Tweet

Nigerian Government Creates $426m Microcredit Development Fund

Guest post by: David Satterthwaite

Article Overview: Nigerian President Alhaji Musa Yar’Adua announced the creation of an N50 billion (the equivalent of over USD 426 million) microcredit development fund to be administered by the Central Bank of Nigeria (CBN). The new fund will be used to provide existing microfinance institutions (MFIs) with funding for credit creation and operational expenses.

Nigerian Government Creates $426m Microcredit Development Fund

Nigerian President Alhaji Musa Yar’Adua announced the creation of an N50 billion (the equivalent of over USD 426 million) microcredit development fund to be administered by the Central Bank of Nigeria (CBN). The new fund will be used to provide existing microfinance institutions (MFIs) with funding for credit creation and operational expenses.


The creation of the fund has been expected by the development community for some time and comes as part of Nigeria’s microfinance framework as established in 2005. The announcement took place on February 19th at CBN’s “Banks and the Nigerian Economy” conference and was followed by a request in which Yar’Adua asked states and municipal governments to contribute one percent of their annual budgets to the fund.


This comes after MicroCapital reported on a consolidation of the Nigerian banking community that closed down at least 145 banks leaving 716 MFIs in operation. According to another MicroCapital report, only eight of these providers report to MIX, the microfinance information clearinghouse. The reporting MFIs have a combined gross loan portfolio of USD 12 million with 250,000 active borrowers.


As noted by MicroCapital last month, the Central Bank of Nigeria (CBN) was established in 1958 and is responsible for the overall control and administration of Nigerian monetary and financial sector policies, including the granting and revocation of bank licenses. As of October 2007, it reported total assets of NGN 7.24 billion (USD 61.4 million).

Related Articles
  What is microfinance? FAQ
  Federal Executive Council (FEC) of Nigeria Approves $27.2m Loan from the International Fund for Agricultural Development (IFAD) for Rural Microfinance
  The State of the Microcredit Summit Campaign Report 2006
  What is a Microfinance Institution (MFI)?
  International Year of Microcredit Advisors Visit Kenya and Uganda: Princess Maxima, Diederik Laman Trip and Marilou van Golstein Brouwers Promote Microfinance on the Continent

Article Tags: alhaji, bank of nigeria, borrowers, central bank of nigeria, central bank of nigeria cbn, credit creation, economy conference, financial sector, gross loan, information clearinghouse, loan portfolio, microfinance institutions, municipal governments, musa, n50, nigerian economy, nigerian president, operational expenses, revocation, yar adua



Related Forum Posts
Re: Can someone explain Search engine optimization to me? - Hi, Ask yourself, "What is the goal of a search engine like Google?" A search engine's goal is to provide the most related (or best) web page results when someone searches. Do you think people are searching for "Auction Cars Government" or "Government Car Auction." In fact type those keywords into Google with the quotation marks. You will find that Google gives different results for each keyword phrases. Granted you get many of the web pages ranking the same but there is a difference. My answer is, use "Government Car Auction" or even "Government Seized Car Auction" because that is what people are searching for. That is how the majority of the indexed pages use. That is what makes sense when you read the phrase. Jeff
Re: what position to request? - Hi Michael, Great suggestion from David, or you could try something around a design consultancy, How about Website Design Consultant, Design and Development Manager, Website Support and Development Manager or maybe Internet Business Development Consultant. Ultimately whatever you are comfortable with and good luck for the future, Mal.
Research & Development Tax Credits - If anyone is involved in any sort of R&D I have a contact that can submit an application for you to the Government of Canada to get back upto 80% of expenses you may have incurred. Best of all - all this at no cost to you. She's worked with companies of all sizes and part of her services, which are included is how to structure yourself in the future to continue to receive these Government Tax Credits. She can even go back to the last three years in your books to get Tax Credits refunds as well. Email me and I can share her details with you.
Re: With Love From Nigeria! - Hi Adebola Oni, Welcome to this great forum. I just saw your post today. You will like it here. I am also a Nigerian living in South Africa. I will check your sites and get back to you
Re: Obama Wants Social Security for Illegals - [quote="Alan Mater":1q4mpk8g][quote:1q4mpk8g] This is what happens when the Government gets involved and puts its nose where it shouldn't. Let the market correct itself. There is no reason for the Government to bail everyone out. If the businesses, mainly banks, weren't corrupted with greed, this wouldn't have happened. They are and it did, so let them dwindle away and pay for their mistakes. That's what any small business has to do. Why should they be any different. They have gotten away with it for over 10 years! Surely they should have seen this coming. [/quote:1q4mpk8g][/quote:1q4mpk8g] The same thing happened in the early 30's that's why the law to prevent these practices was put in place. But, during the Clinton administration people decided that eliminating that law would boost the economy - once again, that didn't work. Kind of reminds you of the saying that people who don't consider history are bound to repeat it. Chris


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Ways to Improve Your Landing Page Conversions

Download a template or see a lawyer?

What should your free giveaway be?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.