THE Nigeria Deposit Insurance Corporation (NDIC) has called on financial institutions, especially microfinance banks (MfBs), to increase funding to Micro Small and Medium Scale Enterprises (MSMEs).
Its Director, Special Insured Institutions Department, Mr Joshua Etopidiok, said such assistance to MSMEs could be done on the shoulders of moveable collaterals.
According to him, moveable collaterals are created to expand the credit space for individuals and MSMEs.
He said about 36.8 per cent of adult population in the cuntry are financially excluded and lacked access to savings and loans.
Etopidiok spoke on Thursday at 2019 sensitisation workshop on: Dead Capital/ Moveable Collaterals and MSMEs funding organised by NDIC for MfBs in Uyo, Akwa Ibom State.
He said: “There is urgent need to encourage banks, especially MfBs to fund MSMEs through the shoulders of moveable collaterals. About 36.8 per cent of the adult population in Nigeria are financially excluded and lacked access to savings and loans and moveable collaterals are created to expand the credit space for individuals and MSMEs”
He said with rising unemployment, reduction in foreign reserves, and slack in economic activities, there was need to stimulate and activate domestic economy through MSMEs which are the engines of growth in any country.