Babagana Umara Zulum, Governor of Borno State, is said to have directed the State Ministry of Finance and other concerned stakeholders to establish emergency microfinance banks in 25 of the state’s 27 Local Government Areas.
The goal, according to the state government, was to allow rural residents to exchange their old naira notes for new ones.
The Nigerian Central Bank (CBN) recently redesigned the N1000, N500, and N200 naira notes.
Since then, the apex bank has declared that the old notes of the three denominations will no longer be valid on January 31, 2023.
To meet the deadline for the withdrawal of old naira notes, Zulum directed that banks be established in accordance with regulatory procedures by the state finance ministry and higher education institutions.
WITHIN NIGERIA understands that banking services have been rendered ineffective in most parts of Borno State for years due to Boko Haram insurgents’ constant attacks, killings, and destruction.
The governor’s directive for microfinance banks was contained in a statement issued on Wednesday in Maiduguri during an extraordinary stakeholders meeting attended by the Shehu of Borno, Abubakar Umar Garbai Elkanemi, who was represented by the Waziri of Borno, Mustapha Waziri Muktar.
Zulum directed that branches of the microfinance bank be established as soon as possible in the Monguno and Gwoza Local Government Areas.
Zulum lamented;
At the moment, we only have two LGAs with banking services, which are Maiduguri and Biu.
The distance from most of the local governments to either Maiduguri or Biu is too long.
The governor added, saying;
Despite a great improvement of the security in Borno, there are still challenges for banks to start operations. Banking is a very delicate industry and I am sure none of them is willing to take the risk of establishing branches in our LGAs for now.
He stated that the state government had no choice but to take the risk of establishing branches of the state’s microfinance bank in each of the state’s 25 local government areas in order to alleviate the state’s people’s suffering.
Governor Zulum also directed the Ministry of Finance to create a template as soon as possible to organize and ensure that people in rural communities deposit their old naira notes before the January 31 deadline.
In addition, he directed the Ministry of Higher Education, Science, Technology, and Innovation to assist mobile telecommunications providers in improving network coverage for internet connectivity across all 27 local government areas.