Kano Government, CBN sign N2bn agreement on micro finance to alleviate poverty

Kano state government has signed a N2 billion Memorandum of Understanding (MoU) on medium scale enterprises development with the Central Bank of Nigeria (CBN), aimed at alleviating poverty and accelerating economic development.

Speaking shortly after signing the agreement at the Government House in Kano (Wednesday), the state governor, Rabi’u Musa Kwankwaso explained that the funds would be injected into the 37 microfinance banks recently established by the state government, for poor people to access them.

“Through these banks, poor people, especially those in our rural areas can obtain the much desired capital to boost micro, small, and medium enterprises, which will in the long run improve the local economy”, the governor maintained.

“We, therefore, took advantage of this fund to help our artisans, farmers and entrepreneurs”, said the governor, adding that small scale enterprises are major drivers of the national economy.

While urging especially rural dwellers to take advantage of the fund, he also tasked managers of the Microfinance banks to administer the money efficiently in order to achieve the objectives of securing the loan.

Governor Kwankwaso thanked the CBN for helping to fight poverty in the state, stressing that the concern expressed by the apex bank was a morale booster.

On his part, the Central Bank of Nigeria (CBN) Governor, Mallam Sanusi Lamido Sanusi disclosed that Kano state is the first state to exploit the benefit of fund, set aside for the development of the small scale businesses in the country.

He explained that the CBN is determined to support states that intend to empower their poor citizens, especially rural dwellers and women, adding that “when the micro-finance guidelines were amended to allow state governments to establish Micro-finance banks, it was because of the recognition of the fact that Micro-finance is primarily for development and not about profit”.

Halilu Ibrahim Dantiye, mni, fnge
Director of Press and Public Relations
to the Executive Governor of Kano state.