FCT: Centre backs CBN’s Micro Finance Bank policy
The Centre for Social Justice (CSJ) has welcomed the establishment of the Central Bank of Nigeria (CBN)-backed Micro Finance Bank. The Lead Director of the centre, Eze Onyekpere, said yesterday in a statement that there are two sides to the CBN initiative, the first being evidently positive while there is some contention in the downside […]
Corporate headquarters of the Central Bank of Nigeria, CBN in Abuja
The Centre for Social Justice (CSJ) has welcomed the establishment of the Central Bank of Nigeria (CBN)-backed Micro Finance Bank.
The Lead Director of the centre, Eze Onyekpere, said yesterday in a statement that there are two sides to the CBN initiative, the first being evidently positive while there is some contention in the downside second part of it.
According to him, the Micro Finance Bank is the brainchild of the Bankers’ Committee, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and the Nigerian Postal Service (NIPOST), with a capital base of N5billion.
Onyekpere said the bank will give out loans at a five percent interest rate and customers will have a two-year moratorium and five years for repayment.
He added that the initiative will increase value addition, create new jobs as the SMEs will have access to credit to expand and deepen production, will also create the opportunity of increased profitability.