Micro finance is better targeted at women – CBN

The Deputy Governor, Operations, Central Bank of Nigeria (CBN), Dr. Kingsley Moghalu has said that microfinance institutions can only accelerate economic growth in the country if its contextual basis is restructured and targeted at women.

Moghalu who made this remark at an international sustainable banking forum organised by CBN in conjunction with International Finance Corporation, (IFC) in Lagos said that women faced with the challenges of accessing capital in modern economy.
He explained that the problems with micro finance banks in Nigeria was that it was not started on the best contextual basis which  targeted  at women and as result they  became corrupted and turned to be a mini commercial bank.
Comparing Nigeria with other countries, he said “in Bangladesh, India and other parts of Asia where it began, micro finance bank was targeted at women.”

Moghalu pointed out that one of the reasons why women have been excluded in assessing fund was because traditionally they were restricted from owning lands in many societies and cultures.

He listed capital as a critical requirement for capitalism to thrive and advocated more access to finance by sectors that have been excluded before now.
“One of the basic requirements of capitalism is capital. You cannot have capitalism without capital and that means access by finance to sectors that have been traditionally excluded from finance in the modern economy.

He said that setting up a N220 billion micro, small and medium enterprises (MSME) fund was a very concrete way of mapping out fund to make sure that woman has access to finance. He said that such fund would require collateral repayment plans, stressing that the apex bank is working to create what he call movable collateral.