The Central Bank of Nigeria and Bankers Committee have been advised to raise the capital base of Nigeria Incentive-Based Risk Sharing System Micro finance Bank from five billion naira to one hundred billion naira.
This was made known by the director, Centre for Social Justice, Eze Onyekpere,who said the five billion naira capital base of the MFB may not be adequate to bridge the funding gap.
The CBN Governor, Mr Godwin Emefiele, had last week during a facility tour of the MFB said loans would be given at five per cent with a seven-year repayment period.
Mr. Onyekpere added that loans will be available at lower rates below inflation and monetary policy rate.
This to a great extent implies that the beneficiaries will be enjoying a subsidy.
He stressed that the development will tackle the challenge of access to credit for small medium enterprises.
Mr. Onyekpere further added that initiative would increase value addition, create new jobs as small businesses would have access to credit to expand and deepen production.