By Jabiru Hassan
The Better Economic Society (BES) has called on the Kano State Government to investigate the operations of state-owned microfinance banks to assess whether they are fulfilling their mandate of supporting grassroots economic development.
Speaking to journalists in Kano, representatives of the group said the banks were established to improve financial inclusion, provide access to credit for small businesses and bring banking services closer to rural communities.
BES alleged that some of the microfinance banks had not fully achieved these objectives and urged Governor Abba Kabir Yusuf to set up an independent committee to review their activities and transactions.The group also alleged that access to loan facilities had, in some cases, been influenced by political considerations rather than the intended eligibility criteria.
A senior staff member of one of the state-owned microfinance banks, who requested anonymity because he was not authorised to speak publicly, also alleged that some loan disbursements did not follow established guidelines.
Similarly, some loan applicants interviewed by the newspaper claimed they were unable to access financing, alleging that some beneficiaries had political connections. These claims have not been independently verified.BES urged the state government to ensure that any review covers all state-owned microfinance banks, including those whose licences were revoked by the Central Bank of Nigeria (CBN), with the aim of improving transparency, accountability and service delivery.
