The Central Bank of Nigeria (CBN) announced that it has reserved the sum of N220 billion. The money will be disbursed as loans to cooperative organizations. The project will be under the Micro Small and Medium Enterprises Development Fund (MSMEDF).
This statement was made by Mr. Isaac Okorafor, CBN’s Director of Corporate Communications Department.
Stability and Economic Development
According to him, loans was set specifically to encourage artisans, including those who are into hairdressing, barbing, vulcanizing works, among others. It will also especially target people who employed others to work with.
“If you empower this group of people, the economy will move faster because they will also employ others,” Isaac said.
Mr. Okorafor added that people were discouraged to apply for the loan. Very few people are able to access such in commercial banks, where they needed to have collateral.
“This is the reason why we made the provision for this loan. People will be able to access it through their cooperative organizations. All they need to do is to open an account with a bank, operate it, and then apply. The loan is without collateral and the interest is only nine percent.” he added.
He also urged the youth to embrace farming activities and make money out it.
“In CBN, we do not give grants to people. We show them the way to follow and make money,” Mr. Okorafor said.
In his presentation, the Assistant Director, CPD at the apex bank, Oludaramola Atanda, also commented. He suggested that customers should know their right to be served better by their banks, so they can increase profitability.
Mr. Atanda implored them to always report any case of strange transactions concerning their account. Doing such will increase security and provide better opportunity to prevent fraud or even recover funds.
He, however, urged them to desist from giving their ATM pin and BVN numbers to others for loans or other things, to prevent fraud.