Move Beyond GDP Obsession, Invest In Microfinance – Moghalu

Former presidential candidate and economist, Kingsley Moghalu has faulted direct funding of Small and Medium Enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs) by the Central Bank of Nigeria (CBN).

In a statement on Saturday via X, Moghalu argued that pipeline capital should rather be given through microfinance banks.

He also criticised Africa’s emphasis on Gross Domestic Product growth, describing it as a “misguided worship”.

Moghalu outlined five key pillars essential for Africa’s development and called for a shift towards a more comprehensive approach to development.

According to him, Africa must focus on turning scientific advancements into commercially viable products that can drive economic growth.

“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.”

“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.”

According to him, the fourth pillar involves channelling scientific inventions and innovations into the marketplace through mass production.

He said, “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!).”