About 628 financial institutions have contributed to the development and growth of Micro, Small and Medium Enterprises (MSMEs) in Nigeria, the Central Bank of Nigeria (CBN) disclosed this in a report.
CBN stated that over 154,000 Micro, Small and Medium Enterprises (MSMEs) were assisted by the National Collateral Registry to access funds that these businesses need to grow, expand, and compete better in their various markets.
The National Collateral Registry assisted these Micro, Small and Medium Enterprises to access N1.2 trillion loans from 628 financial institutions to promote financial inclusion among these businesses in the country.
About National Collateral Registry
The National Collateral Registry is an initiative of the CBN in collaboration with the International Finance Corporation (IFC) designed to foster financial inclusion and sustainable and inclusive economic growth.
The National Collateral Registry seeks to deepen credit delivery to MSMEs through enhanced acceptability of movable assets such as equipment, machinery, vehicle, tricycle, crops, livestock, account receivables, inventories, jewelleries, amongst others as collateral for loans by financial institutions.
CBN’s NCR Loan report
As of December 19, 2018, CBN recorded an increase of 54 per cent in the number of MSMEs that have used their movable assets to obtain loans from financial institutions through the NCR, recording 154,827 MSMEs from 100,049 in the first year, 2017.
The report quoted by Vanguard also showed that 22,251 of the MSMEs were female entrepreneurs. A further breakdown showed that 146,777 of the borrowers were individuals, 3,416 were micro businesses, 2,169 were medium businesses, 1,777 were small businesses and 687 were large businesses.
Reason for the loan surge
The upsurge in lending activities, according to the CBN, was due to the increase in the number of microfinance banks on the NCR portal as well as increased participation of deposit money banks and non-bank financial institutions.
Lending under the NCR rose by 146 per cent to N1.2 trillion in 2018 from N487 million in 2017. As a result, the number of participating financial institutions in the NCR rose to 628 in 2018 from 103 in 2017.
Breakdown of participating financial institutions
The number of participating Deposit Money Banks (DMBs) rose to 21 from three in 2017, microfinance banks rose to 551 from 96, Development finance institution rose to four (4) from one(1), merchant banks rose four from one, finance companies rose to 13 from 2 while non interest bank rose to one from zero in 2017.
Analysis of lending by participating banks showed that DMBs led with N1.07 trillion, followed by Non-Bank Financial Institutions with N340.3 billion, Development Finance Institutions with N52 billion, MfBs with N21.6 billion, and Merchant Bank with N400 million.
Atsu Davoh is building ways for Africans to easily acquire and spend cryptocurrency
Atsu Davoh has gone from failed projects to running one of Ghana’s most innovative startups.
In recent times, the tech space in Africa has experienced immense growth, with the introduction of several key players and disruptors across various sectors. One sector that is also rising is the cryptocurrency space with Africa experiencing greater crypto ownership and trade volume.
The number of Bitcoins processed on a single day reached its highest value at the beginning of 2021, as more people displayed interest in the cryptocurrency. Due to its fast adoption, more fintech players have created platforms that have made trading with cryptocurrency easier. One of such players is Atsu Davoh who calls himself the “product guy.”
Atsu Davoh dropped out of college (Carleton College) in the United States and moved back to Ghana to help innovate on Africa’s financial infrastructure. Atsu first discovered Bitcoin in 2017 during the first boom when it became mainstream. Before then, he and his co-founder Samuel Baohen had been involved in many failed projects.
He developed a USSD system where people could buy bitcoin through their phone numbers, like tying crypto to phone numbers in a native way. This was one of the first iterations of Bitsika.
Atsu was invited to Join Binance Labs Incubator by Yele Bademosi where he got $150,000 after graduating from the incubator. Bitsika went on to raise around $900,000 from investors. This brought the total seed raised to $1,050,000.
This USSD system worked in Ghana but didn’t work in Nigeria. Atsu and his team then pivoted the platform to a donation crowdfunding platform, which allowed people living in other countries to send donations to African nationals in need of the funds before finally building it into a cross-border crypto remittance platform.
Bitsika users can deposit and remit money across multiple currencies using the app, with all monies deposited in Bitsika stored in USD credits or stable-coin.
Bitsika has over 50,000+ downloads on Playstore and processed nearly $40 million in 2020 with $18,872,474 in deposits, $17,890,807 in payouts (withdrawals), and $3,189,834 in internal peer-to-peer transfers.
Despite a few unfavourable regulations surrounding cryptocurrency in Africa, the market has shown no signs of slowing down as more people are building products that will make trading seamless.
FG signs new Sustainable Development Goals agreement with UN
The Agreement is for new development cooperation with initiatives towards achieving Sustainable Development Goals set in the UN Agenda 2030.
The Nigerian Government has signed a deal with the United Nations to develop new cooperation towards achieving Sustainable Development Goals.
This was disclosed by the Minister of Foreign Affairs, Geoffrey Onyeama, in a statement on Thursday after the agreement was signed with the United Nations Office for Project Services, UNOPS, represented by Ifeoma Charles.
The Minister said, “On behalf of the Nigerian Government, I signed an agreement with the UNOPS represented by Ifeoma Charles Multi-Country Office Rep. The Agreement is for a new development cooperation with initiatives towards achieving Sustainable Development Goals set in the UN Agenda 2030.”
What you should know
The 17 Sustainable Development Goals are:
No Poverty; Zero Hunger, Good Health, and Well-being; Quality Education; Gender Equality; Clean Water and Sanitation; Affordable and Clean Energy; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; Reducing Inequality; Sustainable Cities and Communities; Responsible Consumption and Production; Climate Action; Life Below Water; Life on Land; Peace, Justice and Strong Institutions; and Partnership for the Goals.
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