Kano Assembly expresses concern over upward review of capital base

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Kano State House of Assembly has expressed concern over the recent decision by the Central Bank of Nigeria (CBN) to review upward the capital base of Micro-Finance banks to N200 million from N20 million.

The House made the complaint on Wednesday during its plenary session presided over by the Speaker, Alhaji Kabiru Rurum.

The complaint followed a motion of urgent public importance raised by a member representing Ungoggo Constituency, Alhaji Tasi’u Rabiu-Panisau.

According to Rabiu-Panisau, the decision to review the capital base of the bank came at a wrong time when most people are struggling for survival.

He explained that the decision by the CBN can lead to the collapse of many Micro-Finance Banks which are mostly being patronised by the Small traders in rural areas, especially in the Northern part of the country.

“Many of the micro -finance banks cannot afford to pay such amount, and at the end of the day, the banks will collapse and this can lead to increase in unemplyment.

Apart from the issue of unemplyment that it can lead to, many small scale business people at the rural areas”, Rabiu-Panisau added.

Seconding the motion, the Majority leader and member representing Kano Municipal, Alhaji Baffa Danagundi said no fewer than two million workers will  lose their work nationwide if the bank’s collapse.

The member, therefore, called on the House to as a matter urgency meet Gov. Ganduje to suggest for the injection of huge amount of funds in the banks in Kano to avoid their possible collapse.

The Speaker while commenting during the deliberations, said the Micro-finance banks are mostly used by both the Federal and State governments to distribute loan or any support to people at the rural areas.

The legislatures after deliberating on the issue, adopted the motion and resolved to meet the governor and members of the National Assembly from the state with a view to finding a lasting solution to problem.

The legislatures after unanimously adopting the motion, ordered the Clerk of the assembly, Alhaji Abdullahi Alfa to write a letter to the state government.

NAN recalled that recently, the Speaker received on a courtesy visit the Kano Branch of the Integrated Micro-Finance Banks Union led by its Chairman, Alhaji Abdullahi Isa-Nababa where  he sought for the Assembly’s intervention.

Meanwhile, the proposed 2019 budget estimated at over N219 billion recently presented by the State Governor, Dr. Abdullahi Ganduje has scaled second reading. (NAN)

– Dec. 11, 2018 @ 16:37 GMT |

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