The former deputy governor of the Central Bank of Nigeria, CBN, Kingsley Moghalu, has faulted the bank for directly funding Small and Medium Enterprises, SMEs, and Micro, Small and Medium Enterprises, MSMEs.
Moghalu who said this on Saturday via his official X handle, stated that funding should instead be channeled through microfinance banks.
While condemning the African focus on Gross Domestic Product growth, the Nigerian economist and former presidential candidate labeled it as a “misguided worship.”
The former CBN deputy governor gave five fundamental pillars necessary for Africa’s development, adding that it needs a transition towards a more holistic approach to development.
Moghalu emphasized that Africa should prioritize the transformation of scientific innovations into commercially viable products to stimulate economic growth.
He said: “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. Some are called to create wealth, others to create ideas and entertainment, others to lead, and yet others to serve. Some will be famous, others relatively unknown. But to be happy and content (while able to take care of oneself and family) is the greatest gift of all.
“Third: ensure the availability of electric power infrastructure.
“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 (task for central banks, but not central banks themselves directly funding -no!).”
