Strengthening Nigeria’s Microfinance Institutions
UN Rural Development Arm Helps Strengthen Nigeria’s Microfinance Institutions
New York, Aug 26 2008 6:10PMThe United Nations International Fund for Agricultural Development IFAD is providing a $27 million loan to fortify microfinance institutions in Nigeria in hope of creating a sustainable rural financial system in the West African nation.
The seven-year initiative, co-financed with the Ford Foundation, will create ties between microfinance institutions and formal financial mechanisms in one dozen Nigerian states.
The Rural Finance Institution-building Programme (RUFIN) seeks to boost the rural poor’s access to low-credit to improve the access of women, young people and other marginalized groups to financial services.
To remove obstacles to borrowing, the scheme will lend funds based on character references as opposed to assets.