Worried by the effect of the Coronavirus pandemic on small businesses, the National Association of Microfinance Banks (NAMB) is seeking for a special intervention fund for Small and Medium-scale Enterprises (SMEs) through some palliative measures.
In a press statement issued by the Association at its 13th Board of Trustees Meeting, held recently, said it reviewed the nation’s current state of affairs as it affects the microfinance sub sector in line with emerging economic situations occasioned by the COVID-19 pandemic.
In the statement co-signed by its Secretary and Chairman, Dan Ogun and Ibrahim Bamalli, respectively, NAMB x-rayed the palliative measures, among other issues bothering on economic development.
“NAMB receives and welcomes the timely intervention of the Central Bank of Nigeria and salutes the palliative measures announced by the CBN vide the Circular of March 16, 2020 referenced FPR/DIR/GEN/07/049. It is reassuring to note that the palliative measures are intended to address the negative and adverse consequences of the COVID-19 Pandemic and the situation it creates to key sectors of the economy. It is no doubt a situation that affects the Micro Small and Medium Enterprises (MSMEs), which are the drivers of our microeconomic development.
“It is in view of the above premises that the Board of Trustees of the National Association of Microfinance Banks wishes to further draw the attention of the CBN to the fact that microentrepreneurs and small businesses would be most affected in the possible economic lockdown that this pandemic may create given that the active poor and most vulnerable persons in our economy are found in this subsector. Incidentally, these are the bulk of the customers of Microfinance Banks in Nigeria. Having this understanding, the Board wishes to seek a special intervention for MSMEs through some palliative action to support the Microfinance Banks.
“We believe that the perfect conduit to channel such intervention funds would be the MFBs currently servicing this sector. We therefore, ask that a N50 billion Intervention Fund be provided to MFBs to be disbursed to small businesses, tailored specifically as working capital loans. The tenure should be for 3 years at affordable interest rates,” the statement read in part.