By; JABIRU A. HASSAN, Kano
Microfinance Banks (MFBs) in Kano State have failed to meet the demands of the state’s petty traders despite all efforts being made by the state government to ensure that they benefit from financial support through such financial institutions.
Our correspondent who had chats with some petty traders across the state, gathered that most of the Kano microfinance banks have closed shops due to lack of capital to transacts with the Petty traders who are the targets for establishing the banks by the state government.
A source informed New Nigerian that politicians and their associates should be blamed for grounding the microfinance banks by collecting the loans without paying back what they collected, due to their influence in the government, which is a great set back to the reasons governing the establishment of the banks.
One of the bank managers who pleaded anonymity, told our correspondent that, “politicians just collect money and send their associates to collect as well, but fail to repay on time for us to disburse more loans to petty traders, who are the targets of microfinance banks in Nigeria, and we cannot do anything because they are in the government,” he concluded.
A mechanic from Dawakin Tofa Local Government Area, Sulaiman Umar called on the Kano State Government and Central Bank of Nigeria (CBN) to intensify investigations into activities of Kano Microfinance Banks, to restore them, optimistic that this would certainly boost their trade, especially those who cannot afford to get funds from commercial banks.
