Experts advocate for involvement of MFBs in poverty alleviation programs
Leading banking and development experts are urging the Federal Government to involve Microfinance Banks (MFBs) in the distribution of poverty alleviation funds. These experts believe that by including MFBs, the government can better achieve the objectives of its poverty alleviation programs.
This recommendation comes in response to alleged abuses in the disbursement of these funds by the Ministry of Humanitarian Affairs and Poverty Alleviation.
The National Chairman of the Bank Customers Association of Nigeria (BCAN) and former Registrar of the Chartered Institute of Bankers of Nigeria (CIBN), Dr Uju Ogubunka, stated that MFBs are the most suitable institutions to handle the distribution of funds to the poor, particularly in rural areas.
He emphasised that MFBs are well-positioned to provide financial services to impoverished individuals.
The President of the National Association of Nigerian Traders (NANTS), Dr Ken Ukaoha, pointed out that the financial impropriety observed at the Ministry of Humanitarian Affairs and Poverty Alleviation is evidence of deep-rooted corruption within the public service.
According to him, this should be tackled head on by the relevant authorities in order to alleviate the prevalent multidimensional poverty in the country.
Ukaoha said that channeling social intervention funds through the MFBs would ensure transparency and accountability in the disbursements.
“MFBs are guided by monetary principles in all areas of their operations.
“More so, accessibility of the funds at the local level where small-scale farmers predominantly operate will be more guaranteed.
“The government should get the MFBs involved in getting these funds to the beneficiaries to achieve the goals of the programmes.
“This will also support these grassroots-oriented micro lenders to grow in this very,” he said.
The Chairman, Association of Nigerian Exporters (ANE), Prince Joseph Idiong, said it was important to involve the MFBs in the disbursements considering their reach.
“I prefer the use of MFBs that have strong capitalisation, national or regional spread.
“State government-owned MFBs could also be used as the state governments can be held responsible,” he said.
A former National Chairman of Association of Small-Scale Agro-Producers in Nigeria (ASSAPIN), Amina Jubrin, said that the MFBs are best positioned to efficiently disburse these funds in order to achieve the objective of poverty alleviation.
