Borno State Governor, Babagana Umara Zulum has directed the State Ministry of Finance to, in accordance with regulatory procedures, establish Microfinance Banks across 25 local government areas in the state ahead of the January 31 deadline for the withdrawal of some old naira notes from circulation.
Zulum’s directive followed the CBN’s policy on the phase-out of some old naira notes amid the absence of banking services across 25 out of Borno’s 27 Local Government Areas due to over 12 years of killings and destructions by Boko Haram insurgents.
The governor announced the microfinance measures on Wednesday in Maiduguri during an extraordinary stakeholders meeting which was attended by the Shehu of Borno, Abubakar Umar Garbai Elkanemi, represented by the Waziri of Borno, Mustapha Waziri Muktar.
Zulum directed that where possible, branches of the microfinance bank should start being established this week in Monguno and Gwoza Local Government Areas.
Zulum lamented, “At the moment, we only have two LGAs with banking services and these are Maiduguri and Biu.
“The distance from most of the local governments to either Maiduguri or Biu is too long.
“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 said the state government had to, therefore, take the risk of opening branches of the state’s microfinance bank in the 25 local government areas to alleviate the suffering of the people of the state.
Governor Zulum also directed the Ministry of Finance to immediately come up with a template to organise and ensure people in rural communities deposit their old naira notes before the January 31 deadline.
He also directed the Ministry of Higher Education, Science, Technology and Innovation to support mobile telecommunication providers towards improving their network coverage for internet connectivity across all 27 local government areas.