Microfinance Banks granted loans worth N482.896 billion to MSMEs in the country as of December 2018.
The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele said this at the 27th Seminar for Finance Correspondents and Business Editors, which was held in Gombe.
Emefiele said CBN was working to increase the share of microcredit as a percentage of total credit by 2020.
According to Emefiele, small businesses had been more successful in securing credit from microfinance institutions than conventional deposit money banks.
The CBN governor implied that MFBs were helping to drive financial inclusion among the financially excluded.
Data from the licensed credit bureaus indicated that operations of microfinance banks had helped to improve financial inclusion, Emefiele said
Emefiele said that by increasing access to credit for the economically active segment of the low-income population, microfinance directly contributes to expanding the production base. It also serves as a credible strategy for increasing financial inclusion and reducing unemployment.
Emefiele added that CBN, in collaboration with agencies of government is implementing intervention schemes in addition to promoting microfinance.
Emefiele, however, doesn’t appreciate the inadequate spread in the location of the MFBs in relation to their target beneficiaries.
He then stated that the CBN is currently working assiduously to address identified challenges.