CBN urges financial institutions to fund MSMEs

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The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele has urged the financial institutions in the country to fund operators of Micro, Small and Medium Enterprises (MSMEs), so as to achieve financial inclusiveness.

Emefiele made the call at the 11th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) on Tuesday in Abuja, the nation’s capital with the theme “MSMEs:The Game Changer for Economic Growth and Development.”

The CBN governor further urged the participants to consider the constructive ways to support MSMEs in the country to enable them to perform the essential roles of enhancing economic growth and inclusive development.

“Our task at this conference is to debate and deliberate constructively on the ways to further support MSMEs in Nigeria to be able to perform their essential role of enhancing economic growth and inclusive development.

“ The CBN has done so much in the area of de-risking the MSME sub-sector by providing funds for lending to the sector. It is now up to us the financial intermediaries in the economy to support and complement this effort and turn around the fortunes of MSMEs and the economy at large,” he said.

According to the Governor, CBN had developed many programmes to reduce the risk of lending to MSMEs, stressing the need to channel more funds to the sub-sector to enable it to create jobs for unemployed youths.

He listed some of the intervention programmes by the apex bank to include MSME Development Fund; Small and Medium Enterprise Creative Guarantee Scheme, National Collateral Registry, and Entrepreneurship Development Centre.

Emefiele described the National Collateral Registry as a financial infrastructure introduced to support the crippling market by enabling micro-enterprises to use their movable assets as collateral for bank loans.

“Since the commencement of active cooperation in May 2016, 552 financial institutions have registered 32,645 financing statements valid at over N688.35 billion, 33.4 million dollars and 6 billion euros on the platform. I am very optimistic that the collateral registry will have tremendous impacts on MSME lending in Nigeria and in the foreseeable future.

“This is especially considering the recent launching of the Economic Recovery and Growth Plan which intends to leverage on the power of the private sector in its economic recovery and transformative growth by prioritising all MSMEs in all critical sectors as a significant source of long-term growth,” he explained.

Peace PIAK