Microfinance banks chart monetary roadmap for MSME funding

The National Association of Microfinance Banks (NAMB) has advocated the need for the monetary authorities to broaden the scope of its policy steps towards improved funding of the nation’s Micro, Small and Medium Enterprises (MSMEs).

The President of NAMB, Malam Yusuf Ahmed Gyallesu, who commended the Central Bank of Nigeria (CBN) for its sundry intervention initiatives to support the MSMEs over the years, said new funds for the subsector could come in the form of interventions specifically designed and targeted at the MSMEs to be routed through MFBs.

Malam Gyallesu, while speaking with journalists on how best the MFBs could be better funded to improve their contributions to the nation’s Gross Domestic Product (GDP) after close to two years of COVID-19 pandemic-triggered slowdown at the end of NAMB’s 11th Annual General Meeting (AGM) in Abuja, said the apex bank could also foster linkages between the Deposit Money banks (DMBs), development banks and other specialised financial institutions to boost MSMEs’ productivity.

He explained that, “What the microfinance subsector needs now is funding to be able to support MSMEs. This funding can come in the form of interventions specifically designed and targeted at the MSMEs to be routed through MFBs.

“Another avenue is for CBN to foster linkages between the DMBs, development banks and other specialised financial institutions such that MFBs can source wholesale funds and refinancing facilities from them in order to widen their outreach and for onlending to the MSMEs at relatively cheaper costs.