You are excluding the North from nation’s financial life, ACF tells Central Bank

The Arewa Consultative Forum(ACF) has written to the Central Bank of Nigeria (CBN) complaining of the exclusion of Northern Nigeria from critical aspects of the nations financial life.

This was contained in a letter dated 29th January 2021 and signed by Chief Audu Ogbeh which was made available to newsmen in Kaduna on Thursday.

The ACF Chairman observed in the letter that Northern Nigeria which is the most populous region in the country is unserved and underserved.

The Forum regretted that governments policy of Financial inclusion targetted at the grassroots who form the critical mass of the people by creating jobs and engaging the youths in gainful entrepreneurship may not succeed in the north.

He observed that the Microfinance Banks that are looked upon to serve the majority of the people all over the country are not properly positioned to do this.

“Only one government-owned Micro Finance which is fairly new in the business is being patronized by CBN to disburse intervention funds, thereby neglecting and denying other duly licensed Microfinance Banks across the country the privilege and opportunity to participate in this noble cause,” the letter stated.

According to him, this bank enjoys the unfair advantage of cheap government funds from the government while other Microfinance Banks have to source for expensive funds to compete with the favoured bank in the same market.

He said for the government’s policy of ‘intervention funds’ to the economically poor and micro, small & medium enterprises in every nook and cranny of this country, particularly the north to be successful other strong and reliable Microfinance Banks must be involved.

The letter also criticised the CBN’s new capital requirement for Microfinance Banks.

“The astronomical review of the CBN’s new capital requirement will see to the demise of most of the Microfinance Banks presently operating in the north.

He said only 310 Microfinance Banks are operational in the north and with the new policy, only 15% of them will survive.

This development, he observed will further exclude a good part of the north from financial services and inclusion, compound the negative effects of the second wave of COVID19, aggravate the poverty level of the north and weaken the insecurity of the region.

He also criticised the April 2021 closing date for the recapitalisation of the Microfinance Banks and suggested April 2025. He argued that this will give the banks more time to source for the funds needed at this time of economic depression.

While appreciating the efforts of the CBN in alleviating poverty, Chief Audu Ogbe, urged the CBN Governor to accept the suggestions put to him by the ACF in good faith.

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