…Trains bankers on MSME financing
By Zika Bobby
The Bankers’ Committee has reiterated the strategic importance of the Micro, Small and Medium Enterprise (MSME) to the growth of the nation’s economy.
This was the view of participants at separate workshops in Abuja and Owerri on the N220 billion Micro, Small and Medium Enterprise Development Fund organised by the Bankers’ Committee’s sub-committee on Economic Development, Sustainability and Gender in collaboration with the CBN.
In his opening remarks, CBN’s Director, Development Finance Department, Dr. Mudasiru Olaitan, said the essence of the workshop was to get the Deposit Money Banks (DMB) to key into the strategic plan of the CBN for the MSMEs. “MSMEs are the engine room for economic growth, vehicle for job creation, tools for poverty alleviation and wealth creation for any country’s economy, so there is need to support them to grow so that the economy can grow,” Olaitan said.
In his presentation, the Assistant Director, MSME Development Fund, CBN, Mr. Tobin Jonathan, said the workshop was organised to cross-fertilise ideas and bridge the knowledge gap on the MSME sector by the lending institutions and to also correct the wrong perception of the risky nature of the sector.
In his own presentation entitled, “Movable Collateral, Registry Reforms and MSME Financing in Nigeria”, Dr. Olasupo Musa of the Monitoring & Evaluation Department, National Collateral Registry, said CBN is collaborating with International Finance Corporation (IFC) to establish a National Collateral Registry to stabilise MSME financing and also boost the confidence of Nigerian banks in playing active roles in financing the real sector in Nigeria, most especially the MSME sector.
According to him, the MSME sector is an important catalyst for economic growth and financing the sector needs serious attention. “Globally, collateral for MSME is moving away from fixed assets to movable assets, hence the need to establish a collateral registry for the finance industry. We are excited to partner with IFC on this initiative,” Musa said.
Mr. Peter Bankole, Director, Enterprise Development Centre, Pan Atlantic University, in his paper, challenged banks to embrace MSME financing through stimulation and that they must be seen as intermediators by creating marked access.
According to him, banks should assist big businesses connect the dots with the MSMEs.
Source : SunOnline