Nigerian Bank Nigeria CBN Central Bank Of Nigeria – Microcred MFB Opens First Branch In Kaduna

Source: Thisdayonline, 3 Nov.2010

The World Bank/Nigeria Micro Small and Medium Enterprise Project (MSME), supported Microcred Microfinance Bank, officially opened its first branch in Kaduna recently, promising easy and interest free loans to small and medium businesses. Adjudged as the first large-scale commercial microfinance bank in the North, the bank is targeted at small and medium business people who find it difficult to obtain loans from commercial banks.

The Governor of Kaduna state, Mr. Patrick Yakowa, who commissioned the bank, said it will go a long way in ensuring that small business men and women have access to credit facilities.

Yakowa who was represented at the occasion by the Permanent Secretary, Ministry of Finance, Alhaji Saidu Aiiu Kakangi, said the state government will support the Bank as a demonstration of its commitment to empowering the people by ensuring that loans for small businesses are accessible to the citizens.

Also speaking at the occasion, the Executive Secretary of the Nigerian Investment Promotion Council (NIPC), Alhaji Mustafa Bello, described the bank as a defining moment for Nigeria, stressing that it was the needed stimulus for the realisation of the nation’s Vision 20-20-20 and the MDG targets.

Bello who was represented by NIPC’s Director of Policy Advocacy and External Relations, Mr. James Ebuetse, noted that government reforms in Nigeria have helped to substantially improve the investment climate while increasing opportunities for FDI and stimulation of domestic investments, thereby creating wealth, employment opportunities and reducing poverty.

He urged the Microcred Microfinance Bank to work towards developing and building a sustainable network that will serve the MSMEs in Kaduna State and urged beneficiaries to always honour their obligations. Representative of the World Bank, Mr. Ismail Radwan, in his remarks noted that the IFC, which is the business arm of the World Bank Group, has made equity investment in a number of institutions including Microcred.

The bank is a subsidiary of Microcred SA of France which has successful microfinance operations in several countries including China. It is reputed for innovative models which give access to financial services to micro entrepreneurs, following international best practices.

The bank, according to its Chief Executive Officer, Arnuad Ventura, began operation since March, 2010 and has granted well over 2,000 loans to small businesses especially those who cannot access loans from commercial banks. One of the principal objectives of the Federal Government/World Bank Micro, Small and Medium Enterprise Project, for which the Nigerian Investment Promotion Commission (NIPC) is the executing agency, is to improve access to finance and address the shortage of micro and SME finance to low income micro-entrepreneurs.

The Project, through its access to finance program has supported the transfer of innovative MSME finance models and technologies as well as systems and skills to a selected number of leading financial institutions in Nigeria.

It has promoted the emergence of a strong commercial microfinance sector and the development of alternative financing instruments. The project has worked with the Central bank of Nigeria to improve the regulatory environment and support for the emergence of private credit bureaus in the country.

The MSME project provides technical assistance and has been able to leverage significant private sector investment in the supported institutions. It is supported by the World Bank and the IFC. The occasion was witnessed by the representatives of the French Ambassador, the French Development Agency (FDA) and the Central Bank of Nigeria (CBN).

Nigerian Bank Nigeria CBN Central Bank Of Nigeria, World Bank