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Acting Managing Director, Egwafin Microfinance Bank, Abdulateef Husseni, says microfinance banks remained a major driving force for financial investments in Nigeria in 2022.
Husseni said this in an interview with the News Agency of Nigeria on Monday in Abuja.
This he said, was based on the data from the National Bureau of Statistics (NBS) which recognised the banks as the driving force for businesses, especially Small Scales and Medium Enterprises.
“Available information has shown that local industries depend on this financial institutions to the tune of about 60 per cent of financial investments which now insure economic development of the country.
“Microfinance banks in Nigeria recorded an 82 per cent boost in lending rising from N300.2 billion in 2019 to N546.6 billion in 2020. This is according to the latest data from the NBS.
“Also, an interesting observation to be made is the impact total lending to the private sector alone as it increased by 18.5 per cent (N5.58 trillion) year-on-year to N35.73 trillion in December 2021, up from N30.15 trillion in 2020,” he said.
Husseni said that microfinance institutions were the fuel which helped to drive other sectors to success in 2022. He said that the increase in the private sector lending was supported by the growth of business activities of FinTech and technology based companies.
“And this aforementioned is why microfinance bank should have not given credit for the economic development as a whole in Nigeria,” he said.
