Leading banking and development experts have urged the federal government to engage microfinance banks (MFBs) in distributing poverty alleviation funds. The experts, speaking in Abuja, emphasized that involving MFBs would enhance the government’s ability to meet the goals of poverty alleviation programs. This call follows alleged mismanagement of poverty alleviation funds by the Ministry of Humanitarian Affairs and Poverty Alleviation.
Uju Ogubunka, the national chairman of the Bank Customers Association of Nigeria (BCAN), expressed the belief that MFBs are best suited to disburse funds to the impoverished. Ogubunka, a former registrar of the Chartered Institute of Bankers of Nigeria (CIBN), highlighted the advantageous position of MFBs in handling financial services for the poor, particularly in rural areas.
Ken Ukaoha, president of the National Association of Nigerian Traders (NANTS), linked financial impropriety at the Ministry of Humanitarian Affairs and Poverty Alleviation to deep-seated corruption in the public service. Ukaoha advocated for channeling social intervention funds through MFBs to ensure transparency and accountability in disbursements, citing their adherence to monetary principles and localized accessibility.
Prince Joseph Idiong, chairman of the Association of Nigerian Exporters (ANE), stressed the importance of involving MFBs in disbursements due to their extensive reach. He favored MFBs with robust capitalization and national or regional presence, suggesting that state government-owned MFBs could also be utilized, holding state governments accountable.
Amina Jubrin, a former national chairman of the Association of Small-Scale Agro-Producers in Nigeria (ASSAPIN), echoed the sentiment that MFBs are ideally positioned to efficiently distribute funds for poverty alleviation.
