Edo - Edo State Government has concluded plans to tap into the Central Bank of Nigeria (CBN’s) N220-billion Microfinance Intervention Fund (MIF) to help alleviate poverty in the state.
Governor, Adams Oshiomhole, disclosed such plans when he hosted the Governor of the central bank, Sanusi Lamido Sanusi, at the Government House, Benin City.
“Let me use this opportunity to appreciate your drive to reposition the banks so that it has come up with a number instruments that are designed to focus exclusively and address what I call the true forgotten majority. We also have to acknowledge the fact that those who are poor are increasing in number as a result of decades of wrong policies that have marginalized the majority and created a tiny class of extremely rich people,” he said.
He said government would liaise more closely with the CBN to see how it could benefit from the fund so that it can serve as a guarantor to get the funds and manage them in such a way that people across the 192 wards in the state benefitted irrespective of political inclination.
CBN Governor, Lamido Sanusi said the apex bank will continue to engage the relevant state finance ministries to avail themselves of the opportunity offered to assist small and medium scale micro-enterprises to access about N220 billion intervention fund provided by CBN.
“We do have about 30 micro finance banks and about N220 billion micro and medium fund which is available to service medium term to lend to the poor. We have been convinced that microfinance business has become a business. Where the poorest people are paying the highest interest rate is not the way to alleviate poverty,” he said.
He said the intervention is one of the ways to facilitate access is to work with state governments. So we rely on the state governments to pay us back and the state can charge reduced rate to the poor people.
- CAJ News