The Niger State government says the impact of the banks has not been felt positively by people at the grassroots
Yahaya Dansallau, the Niger State Commissioner for Commerce, Trade and Investment, has said that the 19 microfinance firms operating in the state will refund the take-off grants given to them.
The state government had disbursed N570 million in grants to the companies, as part of measures to give them a stronghold, with each getting N30 million.
During an interactive session with the management of the banks in his office in Minna, Dansallau said that it had become imperative for the banks to evolve strategies to attract more deposits and generate more income.
He said in spite of the government?s commitment by facilitating 19 microfinance banks with N30 million each, the effect of the banks had not been felt positively by people at the grassroots.
The commissioner expressed hope that the banks would begin repayment of the grant voluntarily before the government fixed a period.
“The grant has to be paid back,” Dansallau said but assured the banks that the ministry would deliberate on the implication of the repayment period in order to avoid distressing the banks.
He urged the bankers to tap the abundant potential and resources of their catchment areas, as government expected them to break even and pay back the grant.
He said the banks were expected to be pay back instalmentally with, at least, N1 million every month, so that the impact of the payment would not affect their operations.
Dansallau said henceforth, cheque books of the banks would be routinely checked by the regulatory authorities to ascertain their operations, to reduce the risk associated with such banking activities.
