Posted on March 19, 2009 - by Gavin

Micro-finance banks: KNSG pledges 1% of budgetary allocation…

Daily Triumph

KANO state government has pledged to set aside one per cent of its annual budget towards supporting micro-finance activities as required in the micro-finance policy and regulatory guideline. Kano state governor, Malam Ibrahim Shekarau made the pledge in a speech during a one-day Micro-Finance Investor’s Forum, organized by the Central Bank of Nigeria (CBN), held at Royal Tropicana Tuesday.

Governor Shekarau who spoke through his deputy, Engr. Abdullahi Tijjani Muhammad Gwarzo said the low number of micro-finance banks in the state is unfortunate as such, government would partner with appropriate stakeholders to reverse the trend. He asserted that despite the huge agricultural and human resource potentials in the state, poverty continue to be a source of concern to the government, attributing it to lack of access to financial services.
Governor Shekarau explained that in the 2009 budget, government has set aside N500 million for micro-finance activities and called on Non-governmental organizations, traditional rulers, government officials, the ulama and other financial institutions to participate in providing access to finance the teeming entrepreneurs.

He also expressed concern over the way Kano state is accounting for only six micro-finance banks out of 800 established in the country. The governor, however, applauded the initiative of the CBN for establishing the micro-finance, policy regulatory and supervisory framework for Nigeria.

In his speech, the CBN governor, Prof. Charles Chukwuma Soludo, represented by the deputy governor, financial sector surveillance, Mr. Tunde Lemo described the situation in Kano as pathetic and require the attention of all stakeholders, government agencies and private institutions towards establishing the micro-finance banks, saying the six banks currently operating in the state would not meet the need of the poor people.
He observed that the forum would provide an opportunity to assist graduates with good information to become self-reliant.

On his part, Kano state commissioner of commerce, Alhaji Ahmad Ibrahim Yakasai said the present administration has introduced several programmes in a move to develop local businesses. He then called on the business communities and other NGOs to take advantage of the opportunities provided by the micro-finance business for the advancement of their economic fortunes.

Source: http://www.triumphnewspapers.com/mirc1932009.html