Emefiele Commended For His Commitment To Funding MSMEs
Mr. Godwin Emefiele, the Governor of Central Bank of Nigeria (CBN), has been commended for his commitment to funding Micro, Small and Medium Enterprises (MSMEs) in the country.
The Chairman of the Abuja Chapter of Chartered Institute of Bankers of Nigeria (CIBN), Prof. Uche Uwaleke, made this commendation in Abuja on Tuesday.
However, the commendation was a reaction to the monetary policy roadmap Emfeiele presented for his 2019-2024 new term in office.
Uwaleke, who is a Professor of Finance and Capital Market in Nasarawa State University, Keffi, said two of the five visions of Emefiele focused on his plan to address the problem of access to funds by MSMEs.
“The focus of the bank to fund MSMEs is a good one and it is worthy of commendation.
“For instance, lending money to agriculture is enough to bring down the inflation rate. Howbeit, if agriculture gets more money, food prices will come down.
“Easy access to credit will also help to address the problem of unemployment in the country.
“I am happy that the CBN Governor is thinking towards that because even recently, when he talked about his monetary policy, Emefiele said it is going towards pro-growth.
“Pro-Growth means a policy that will be geared towards lower interest rate so that MSMEs can have access to credit.
“And, when that happens, the productivity level will increase and more people will be engaged,” Uwaleke said.
“Easy access to credit through pro-growth policy will help to reduce unemployment. This is the major challenge the economy has now”, Uwaleke explained.
According to Uwaleke, many of Emefiele’s policies have helped to stabilize the economy. And Uwaleke once again commended Emefiele for that.
Some of the issues addressed by Emefiele in the presentation/report are access to credit and lending to MSMEs.
On the issue of Access to Credit, Emefiele said: “Beyond our intervention programs; we are also working to encourage banks and financial institutions to lend from their balance sheet in order to support the growth of critical sectors of the economy. Sectors such as Agriculture, MSMEs and the Real Estate sector would be developed.
Through the national collateral registry, over N400 billion worth of movable assets has been registered by MSMEs in the registry. We intend to triple this number over the next 3 years.
Our ultimate objective is to broaden the range of collaterals that MSMEs can provide to banks in order to obtain credit.”
On Lending to MSMEs, Emefiele said, “In order to reduce the constraints which high account receivables, have on the growth and operations of MSMEs, we will support the development of a Trade Receivables Portal, which will enable MSMEs trade their invoices with financial institutions in order to improve their cash flow and support ongoing operations of their respective businesses.
For more, visit www.smefinance.org.