Senator Okechukwu Ezea, representing Enugu North Senatorial District, has advocated for the integration of microfinance banks (MFBs) into agricultural and rural credit programs. Speaking at a recent constituency meeting in Nsukka, Enugu State, Senator Ezea emphasized the importance of improved access to rural finance and believes MFBs can play a crucial role in achieving this goal. He highlighted data from the Central Bank of Nigeria showing that MFBs account for the vast majority of bank loans, demonstrating their significant reach and involvement in providing credit.
Senator Ezea argued that incorporating MFBs as disbursement agents would address several critical issues. He suggested that it would prevent the misappropriation of funds by politicians and their associates, ensuring that resources reach actual farmers and rural investors. He also pointed out that the business-oriented approach of MFBs would contribute to better repayment rates, a key factor in the success of such programs. He cited the Nigerian Agricultural Cooperative and Rural Development Bank as an example of an institution that has struggled due to political interference and repayment challenges, suggesting that MFB involvement would lead to more effective tracking of disbursements and enforcement of repayments.
Furthermore, Senator Ezea believes that improved rural infrastructure, particularly roads, combined with enhanced access to credit through MFBs, would significantly boost rural development. He projected that this could lead to a substantial increase in the nation’s gross domestic product, potentially by as much as 30 percent. He urged governments at all levels to prioritize rural development through investments in infrastructure, agricultural inputs, and other essential amenities, citing his own constituency projects as examples of such targeted interventions.
