Monday, October 07, 2019 / 2:44 PM / Nifemi Taiyese for
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Last week the Central Bank of Nigeria (CBN) reviewed upward banks Loan-To-Deposit Ratio, LDR, from an earlier 60% in September 2019 to 65% in December 2019.
The CBN also re-emphasized the need for the banks to increase MSMEs lending considering the role they play in driving the economy.
About 12 DMBs were fined for not meeting the initial LDR requirements of 60% by September 30th, 2019.
Other developments that occurred during the previous week include;
Union Bank Secures $200m OPIC Funding For MSMEs
Union Bank of Nigeria Plc. announced that it has secured US$200 million in funding via a partnership with sub-Saharan Africa financial services group, Atlas Mara Limited, in agreement with Overseas Private Investment Corporation, the U.S. government's development finance institution.
The agreement is consistent with Union Bank's long-standing commitment to enabling enterprise and empowering women-owned businesses. Earlier this year, Union Bank launched Alpher, a dynamic proposition aimed at uplifting women across all segments of the Nigerian society through capacity building opportunities, networking platforms, scholarships and tailored financial services for women.
Cashless Policy: MAN Raises Concerns For MSMEs
The Manufacturers Association of Nigeria said the implementation of the cashless policy may have negative impact on the Micro, Small and Medium Enterprises.
The Director-General of MAN , Mr Segun Ajayi-Kadir disclosed this recently.
He described the MSMEs as the engine room of the economy, especially due to its employment generation capacity.
The MAN DG said the Central Bank of Nigeria failed to make any consultations and sensitisation of the relevant stakeholders before reintroducing the cashless policy.
He also noted that the government ought to have put in place the necessary infrastructure that would support and drive the policy before announcing it.
MSME Development: Edo State Earmarks N2bn Single-Digit Lending
The Edo State Governor, Mr. Godwin Obaseki has said his administration has provided the sum of N2 billion as credit facility at single digit interest rate to micro small and medium enterprises (MSMEs) across the state.
He said the move became necessary in order to drive the state's economy through the contributions of small businesses.
Speaking at the Edo State Special Day at the on-going 2019 Abuja International Trade Fair (2019AITF) organised by the Abuja Chamber of Commerce and Industry (ACCI), the governor also said his administration had achieved 75 per cent job creation out of the 200,000 jobs that it had promised to create for its citizens.
SunTrust Bank Targets MSMEs for Inclusion, Opens New Branch At Idumota
SunTrust Bank Nigeria Ltd, in a bid to providing micro, small and medium scale enterprise financial services disclosed that it is exploring financial inclusion to traders, who do not have access to the services of a bank or financial organization.
The MSME is a sector that should be highlighted as it is going to foster the economy, which is why this is the focus of the bank and the decision to open a new branch at Idumota the business center of Lagos which holds numerous excluded businesses.
This according to SunTrust will deepen financial inclusion in Nigeria and address the poverty rate in the country.