The Kano House of Assembly says it is making efforts to save over two million jobs by asking the state government to help microfinance banks meet new Central Bank of Nigeria (CBN) guidelines.
KANO TODAY recalls that the CBN has increased the capital requirements of microfinance banks from N20 million to N200 million.
House speaker, Kabiru Rurum said microfinance banks are highly important to rural people as government agencies use them to distribute loans and financial grants.
The House of Assembly decided to take this action following a motion by member representing Ungoggo constituency, Tasiu Rabiu Panisau.
According to Panisau “the decision by the CBN can lead to the collapse of many microfinance banks which are mostly patronized by small traders in rural areas, especially in the northern part of the country.
“Many of the microfinance banks cannot afford to pay such amount, and at the end of the day, the banks will collapse and can lead to an increase in unemployment.
Apart from the issue of unemployment, it can lead to the closing of many small-scale businesses in the rural areas,” Panisau said.
Majority Leader and member representing Kano Municipal Baffa Babba Dan Agundi who seconded the motion said about two million workers may lose their jobs if the banks collapse.
The member, therefore, called on the House of Assembly to urgently ask governor Ganduje to provide financial assistance to microfinance banks in Kano to meet the new CBN requirement.
The legislators unanimously adopted the motion and ordered the assembly clerk Abdullahi Alfa to write a letter to the state government.
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Kano this morning: Wednesday 19.12.18
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