Moghalu Faults CBN’s Direct Funding Of SMEs, MSMEs

A former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, has criticized the CBN’s direct funding of Small and Medium Enterprises and Micro, Small and Medium Enterprises, describing it as misguided.

Moghalu, in a statement on Saturday, contended that funding should instead be channelled through microfinance banks.

He emphasized the need for a holistic approach to development, stressing that Africa should prioritize the transformation of scientific innovations into commercially viable products to stimulate economic growth.

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“The first business of African development is developing an endogenous mindset (worldview) of African development. Second: a strategy for overcoming poverty anchored on effective education and skills for productivity. Third: ensure the availability of electric power infrastructure,” Moghalu said.

He also stressed the importance of channelling scientific inventions and innovations into the marketplace through mass production. “Fourth: channel scientific inventions and innovations into the marketplace through mass production. Fifth: ensure access to what I call ‘pipeline capital’ to the bottom of the pyramid – SMEs, MSMEs etc at affordable interest rates through microfinance banks,” he added.