Policy Challenges for Microfinance Design and Practice in Nigeria
This document comprises papers that examine the challenges that microfinance faces in Nigeria and suggest policy recommendations.
Paper 1, Challenges of Microfinance Supply and Administration, looks at various policies, institutions and structures set up for the purpose of microfinance supply and administration in Nigeria. It states that:
- Nigerian MFIs are unable to get to the poor;
- The attitude of commercial banks with regard to microcredit is unfavorable to MFIs;
- The institutional framework for administering microfinance is weak and ineffective.
The paper recommends the establishment of community and mortgage banks, enterprise development agencies and training institutes, and the increased participation of commercial banks.
Paper 2, Policy Needs in the Microfinance Sector: The Missing Angle, argues that microfinance policy in Nigeria:
- Has to be sensitive to the needs of primary stakeholders and their objectives;
- Needs to adopt a development orientation and focus on helping microenterprises grow and raise the living standards of the poor.
The paper substantiates its argument with a case study of microinstitutions and their clients in Nigeria.
Paper 3, Situational Status of Microfinance Institutions, focuses on the macro-policy imperatives of building institutions meant to provide microfinance services to the poor. The paper presents general guidelines for designing effective MFIs according to stakeholder roles.
The document also includes summaries of papers presented at the second plenary session of the Enugu Forum.
