CBN Partners with Microfinance Banks to Boost Financial Inclusion

The Central Bank of Nigeria (CBN) has announced its partnership with Microfinance Banks to enhance financial inclusion and stimulate growth of Micro, Small and Medium Enterprises (MSMEs) in the country. This partnership aims to provide access to funds for the less privileged to develop and expand their economic activities.

At the inauguration of Dabtikir Microfinance Bank Limited in Hong, Adamawa State, CBN Controller, Yola Branch, Mr. Sah Nyashi, emphasized the importance of this partnership. “CBN would continue to partner with you in the areas of Micro Small and Medium Enterprises, Agricultural Credit Guarantee Scheme and Financial Inclusion,” he said. Nyashi, represented by Adamu Yusuf, Head Currency Management Office, CBN, highlighted the critical role of microfinancing in enhancing economic growth and sustainability in Nigeria.

Dr. Asongo Abraham described Microfinance Banks (MFBs) as “beacons” of hope for community development and nation-building. He noted that microfinance provides access to capital critical for small businesses to thrive, create employment opportunities, and improve living standards. Abraham advised the management of the bank to leverage technology and build trust with customers for successful businesses.

Prof. Benson Baha, Provost College of Education, Hong, encouraged people to open accounts with the bank for social and economic development at the grassroots. “The aim of establishing the bank is to promote rural development through provision of finance and banking services to the host communities,” he said.

The Speaker, Adamawa State House of Assembly, Mr. Bathiya Wesley, pledged support to the MFBs to enable them contribute towards improving the social and economic well-being of the people.

This partnership aligns with CBN’s goal to accelerate financial inclusion in Nigeria, which currently stands at 63%. The bank aims to increase financial inclusion to 95% by 2024. Microfinance banks play a vital role in achieving this goal by providing financial services to the poor and low-income earners.

The CBN has launched various initiatives to support MSMEs, including the MSME Development Fund, which was established in 2013 with a share capital of N220 billion. These efforts demonstrate the bank’s commitment to promoting economic growth and development in Nigeria.