Expert advises CBN to increase loan ceiling for MFBs
Loan
By Deborah Coker
Benin, May 24, 2018 (NAN) Dr Michael Marx, the Senior Advisor, Agric Finance, AFOS Foundation Germany, has advised the Central Bank of Nigeria (CBN), to increase loan ceiling for Micro Finance Banks (MFBs) from N500,000 to N10 million.
Marx gave the advice on Thursday in Benin at the 4th annual symposium of the Nigerian Microfinance Platform.
He said the increase would help to compensate for inflation, as well as allow for financing of farmer groups and value chain operators.
The News Agency of Nigeria (NAN) reports that Marx’ advice was contained in a paper he delivered entitled, “Perspectives of serving the Agricultural Sector through Microfinance Banks”.
Marx said that the CBN should request Micro Finance Banks and Micro Finance Institutions to express their interest rates and charges as annual percentage rates.
He said that the CBN should offer refinance for term loans of one to three years in naira to MFBs to enable them lend for small equipment, without policy strings attached.
Marx noted that there was great potential and interest in some MFBs to expand agric lending.
NAN also reports that a keynote paper on “Policy Framework” was presented earlier by Dr Mudashir Olaitan, Director, Development Finance Department, CBN. (NAN)
DCO/GOM/YEMI
Edited by Gregory Mmaduakolam/Yemi Idris-Aduloju