MICROCAPITAL BRIEF: Niger State in Nigeria To Facilitate the Establishment of New Microfinance Banks (MFBs) Across the State

Alhaji Mohammed Aliyu, Director-General of Niger State Small and Medium-Sized Enterprises and Microfinance Agencies, has announced that the number of microfinance banks (MFBs) in Niger, the largest state by area in Nigeria, is expected to grow from 11 to 31 by the middle of 2010. According to Mr Aliyu, this will employ between 300 and 500 college graduates in the state. Over CFA 1.5 billion (USD 2.8 million) in total have been disbursed for the creation of these new banks by the local governments. Included in this amount is CFA 30 million (USD 56,000) given interest-free to 18 microcredit cooperatives for consulting services as well as for advocacy and outreach efforts across the state. Local subdivisions of the state government have spent over CFA 260 million (USD 490,000) towards renovating the bank offices.

Mr Aliyu’s agency is also collaborating with the national government to train young people in entrepreneurship and connect them with microenterprise loans. He says, “We are presently training another batch of about 1500 youths in different areas under the auspices of the newly established Ministry of Youth Affairs and Strategy. Beneficiaries will also be linked with microfinance banks for sustainability, while the state government would facilitate access to required seed capital” [1].

Mr Aliyu also added that a committee would be set up to check on the operations of these new banks [2], but no additional information is available on the details of this committee.

By Julia Korn, Research Associate

Sources and Additional Resources:

[1] Microfinance Africa: “Niger State, Nigeria, To Increase Microfinance Banks, Create Employment” by Amina Alhassan Ahman, May 12, 2010: http://microfinanceafrica.net/news/niger-state-nigeria-to-increase-micro…

[2] Leadership Editors: “Niger State To Increase Microfinance Banks, Create Employment” by Abuja Chibuzo Ukaibe, May 14, 2010: http://www.leadershipnigeria.com/news/headlines/15019-niger-state-to-inc…

MICROCAPITAL BRIEF: The National Association of Microfinance Banks (NAMB) to Partner with Universities to Facilitate Capacity Building in Nigerian Microfinance Sector, May 14, 2010: https://www.microcapital.org/microcapital-brief-the-national-association-…

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