CHIEF Executive Officer of Nigerian Exchange Limited (NGX), Mr. Jude Chiemeka, has urged microfinance institutions to explore capital market solutions to address their liquidity challenges.

Delivered a keynote address at the 13th Annual General Meeting (AGM) of the National Association of Microfinance Banks (NAMBLAG) for the Lagos State Chapter, Chiemeka proposed that microfinance banks consider utilizing capital market tools such as bonds, equity financing, and social impact bonds to access long-term funding and diversify their financial sources.

He noted that these instruments would enhance the sector’s financial stability and improve its capacity to lend.

“By tapping into the capital market, microfinance banks can secure more sustainable funding, enabling them to meet the growing demand for financial services at the grassroots level. This is key to supporting the long-term stability and expansion of the sector,” Chiemeka stated.

Chiemeka emphasized the critical role that microfinance institutions play in promoting financial inclusion and supporting small and medium-sized enterprises (SMEs) in Nigeria. He acknowledged their impact on grassroots economic empowerment but highlighted the significant liquidity constraints that limit their growth and operational capacity.

He discussed the Exchange’s contributions to enhance market liquidity through innovations like X-Gen and NGX Invest, alongside initiatives to educate investors and promote regional market integration through the West African Capital Markets Integration Council (WACMIC) and the African Exchanges Linkage Project (AELP).

Chiemeka, therefore, called for increased collaboration among stakeholders to embrace innovative financial solutions, which he believes will strengthen the microfinance sector and promote financial inclusion for millions of underserved Nigerians.

The AGM was attended by key stakeholders, including AlhajiAbubakarAdamu Ahmad, National President of NAMBLAG, and the newly elected Chairman, Mr Adegoke Akinola Adegbami.

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