Micro -Finance Bank : CBN New Policy May Lead To Over 2 Million Job Loss

By Adamu Aminu

Kano  House of Assembly has protested the recent Central Bank of Nigeria (CBN)  decision to review upward, the recapitalization funds For Micro-Finance Banks to N200 million from N20 million.

The house decided to move against the upward review of the fund was taken on Tuesday during its plenary session presided over by the Speaker, Alhaji Kabiru Rurum.

The decision followed a motion of urgent public importance raised by a member representing Ungoggo Constituency, Alhaji Tasi’u Rabiu-Panesar.

According to Rabiu-Panisau, the decision to review upward the fund came at a wrong time when most people are struggling for survival.

According to him “the decision by the CBN can lead to the Collapsed of many Micro-Finance Banks which are mostly patronized by the Small traders in rural areas, especially in the Northern part of the country.

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“Many of the Micro-finance Banks cannot afford to pay such amount, and at the end of the day, the Banks will Collapse and can lead to an increase in unemployment.

Apart from the issue of unemployment, it can lead to the closing of many small-scale businesses in the rural areas”,  Rabiu-Panisau added.

While Seconding the motion, the Majority Leader and member representing Kano Municipal Baffa Danagundi said no fewer than two million workers may lose their jobs if the Banks Collapsed.

The member, therefore, called on the house to as a matter of urgency meet governor Ganduje to suggest for the injection of a huge amount of funds in the Banks in Kano to avoid any unfavorable circumstances.

The Speaker, Rurum while commenting during the deliberations, said the Micro-finance are mostly used by both the Federal and State government to distribute loan or any support to people at the rural areas.

The legislatures after deliberating on the issue adopted the motion and planned to meet the State Governor, Dr. Abdullahi Ganduje and members of the National Assembly from Kano on the issue.

The legislatures after unanimously adopting the motion ordered the Clerk of the assembly Alhaji Abdullahi Alfa to write a letter to the state government.

Solacebase recalled that recently, the Speaker received the Kano Branch of the Integrated Micro-Finance Banks Union led by its Chairman, Alhaji Abdullahi Isa-Nababa seeking for the Assembly’s intervention.

Similarly, during the plenary session, the proposed 2019 budget estimated at over N219 billion recently presented by the State’s Governor, Dr. Abdullahi Ganduje has scaled second reading.