ENUGU – The Nigeria Deposit Insurance Corporation (NDIC) has urged governments and wealthy individuals from the South-East geopolitical zone to establish more microfinance banks (MFBs) in the zone.
The Managing Director and Chief Executive Officer of the corporation, Alhaji Umaru Ibrahim, made the call on Saturday at its Special Day at the ongoing 25th Enugu International Trade Fair.
The managing director said that establishing more of such bank would help to alleviate poverty and improve the well-being of the people.
Ibrahim, who was represented by the Director, Special Insured Institutions Department, Malam Bashir Umar, said the South East had 169 microfinance banks representing 19.2 per cent of all the MFBs across the country.
According to him, considering the huge population in the rural areas, there is need for more MFBs in order to empower the people of the area.
The managing director said regulatory body would continue to license more MFBs as long as they meet the necessary requirements.
He said it would also provide insurance coverage, technical support and supervise them.
According to Ibrahim, the corporation promotes financial literacy as one of the strategies for attaining financial inclusion in the country.
He said the organisation had developed a framework for the extension of insurance coverage to individual user of mobile money payment services with a view to boosting confidence in the financial system.
“This channel is a convenient, secure and affordable way to send money to friends and family using mobile phones,’’ he said.
Ibrahim, however, said it still faced the challenge of public awareness, and urged the media and other stakeholders to assist the corporation in promoting public awareness.
In his remarks, Dr Ifeanyi Okoye, the President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture, commended the NDIC for its role in protecting of depositors’ fund.
Okoye urged the corporation to increase the amount of compensation paid to depositors when banks go under. (NAN)