The government of the state of Abia, which is located in southeastern Nigeria, is planning to open a microfinance bank in October 2018. The institution will seek to offer “soft loans” to borrowers unserved by existing financial institutions. Loan sizes are to range from NGN 20,000 (USD 55) to NGN 500,000 (USD 1,375).
The bank will also focus on two other projects that have been approved by the Central Bank of Nigeria with the intent of encouraging farming: (1) a starch processing factory; and (2) the Commercial Agricultural Scheme, which encourages farmers to utilize untapped land in Nigeria with the aim of reducing food prices, generating food for export and reducing inflation.
By Michelle Fleming, Research Associate
Sources and Additional Resources
Sun News article: Abia Government to Establish Microfinance Bank to Assist SMEs
http://sunnewsonline.com/abia-govt-to-establish-microfinance-bank-to-assist-smes-commissioner/
Central Bank of Nigeria on the Commercial Agricultural Scheme
https://www.cbn.gov.ng/devfin/acgsf.asp
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Akbank Selling $300m in Bonds to DFC, AIIB, IFC – Half to Support Women-owned Businesses in Turkiye
- MICROCAPITAL BRIEF: FMO Lends $10m to Latin American Agriculture Development Corporation (LAAD) to Boost Green Investment
- MICROCAPITAL BRIEF: Asociación de Cooperativas Argentinas (ACA) Borrows $80m from FMO, FinDev Canada, Rabobank to Boost Exports of Produce from 50,000 Farms in Argentina
- MICROCAPITAL BRIEF: QR Codes to Facilitate Retail Payments Across Cambodia-Laos Border
- MICROFINANCE EVENT: Cracking the Nut: Reducing Risk in Rural and Agricultural Investment; June 12-13, 2023; Washington, DC, USA
