The lawmaker representing Enugu North Senatorial District, Okechukwu Ezea, has called for the integration of microfinance banks into the disbursement of agricultural and rural credit programmes for improved access to rural finance.

Ezea said this during a recent constituency meeting in Nsukka, Enugu State.

Recent data from the Central Bank of Nigeria revealed that 95.66 per cent of bank debtors borrowed from microfinance banks as of September 2024. Out of the 6,537 total debtors recorded across all creditor types, 6,253 were linked to MFBs, reflecting their pivotal role in providing access to credit.

Speaking at the forum, Ezea said that the inclusion of microfinance banks in the disbursement of agricultural credits will eliminate funds hijacked by politicians and their cronies who prevent real farmers and rural investors from accessing such funds.

He also said the business orientation of MFBs will help prevent repayment failures that have led to the failure of similar programmes in the past.

Citing the example of the Nigerian Agricultural Cooperative and Rural Development Bank, which, according to him, has had limited successes as a result of political hijacks and repayment failures, Senator Ezea recommended that the involvement of MFBs as disbursement agents will ensure proper tracking of disbursements and enforcement of repayments to ensure that the funds achieve the targeted development multipliers.

https://punchng.com/senator-urges-mfbs-integration-for-agric-credit-access/