Microfinance Operators Seek Govt. Support of MFBs

Microfinance Operators Seek Govt. Support of MFBs

- Give them tax incentives

Operators of microfinance banks in the country are pleading with the federal government to assist the microfinance industry.

They believed that with proper assistance, the industry can develop the grassroots people, thereby creating jobs and reducing poverty in the country.

Speaking recently, on the state of microfinance sector of the country's economy, a microfinance bank executive, Mr. Taofeek Gbolagade Rahman, requested government to channel its empowerment programme through microfinance banks, since they are closer to the people.

Inadequate funding, unfavourable government policies, among others, he said, are some of the challenges microfinance banks are facing.

While reacting on the trust fund initiated by the Central Bank of Nigeria (CBN) for MFBs, he advised government to disburse the money through microfinance banks, as only the rich people still benefit from such funds.

Government, he said, could put in place policies that would make MFBs to reach out to the poor masses, especially the petty traders.

He stressed the need for government's support, as this would enhance the banks' capacity, as many people would be empowered with a view to addressing the issue of insecurity in the country.

In a related development, another bank executive, Mr. Oladipupo Ajayi, told government to give microfinance banks tax incentive, as MFBs are paying the same tax rate as other big companies.

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