MICROCAPITAL STORY: Nigeria’s Rivers State Micro-Finance Agency (RIMA) And First City Monument Bank (FCMB) Promote Microfinance to Laid-Off Motorcycle Operators

Microfinance is being proposed as a potential solution to the large number of commercial motorcycle operators known as ‘Okada’ who have recently found themselves unemployed in the Rivers State of Nigeria. The government recently banned the motorcycles in the state capital of Port Harcourt as a part of its urban renewal programme. The government has asked all willing ‘indigenes’ who are displaced by the ban to access the N2 billion (USD 12.8 million) microfinance programme with First City Monument Bank (FCMB) to venture into a taxi business, which is being managed by Skye Bank. The state Transport Commissioner, George Tolofari said that the measure was a part of a government effort to ensure that former Okada operators of Rivers State origin are provided with assistance and continue to feel a sense of belonging. He also stressed that the credit facilities must be used as intended by government.The Rivers State Micro-Finance Agency (RIMA) is ensuring a total of R3billion (USD 19.2 million) is distributed throughout 23 local government areas of the state, which will be disbursed through collaboration with local and foreign development finance agencies. The Rivers State Deputy Governor, Engr. Tele Ikuru, opened a one-day interactive session for local government chairmen, hosted by RIMA to discuss these funds and to encourage accessing this fund. Whether the N2 billion (USD 12.8 million) for the microfinance programme mentioned in the above paragraph is included in this N3billion (USD 19.2 million) is not defined, however due to the timing of the news articles and the presence of FCMB at the open day, it is likely.

According to a report by Minority Rights Group International (MRG) available on the United Nations High Commissioner for Refugees (UNHCR) site, the concept of ‘indigeneity’ officially began in Nigeria’s 1979 constitution and is continued in the current 1999 constitution. It is a system which categorizes all Nigerians into indigenes or non-indigenes to a region and is based on where their parents or grandparents are born. While the intent was for the concept to ensure ethnic parity in education and employment, according to MRG the policy has become a tool for indigenes to exclude competing ‘non-indigenes’ from educational and employment opportunities, despite the fact that these people may have been resident in a state for their entire lives.

First City Monument Bank (FCMB) is a commercial bank with over 140 branches throughout Nigeria. It is a part of First City Group, a Nigerian financial services provider whose subsidiary, Credit Direct Limited is the group’s micro lending business. Its total assets in 2008 were N587.4 billion.

By Lori Curtis, Research Assistant

Additional Resources:

Business Day: “Taxi operators benefit from N2bn microfinance scheme in Rivers

Daily Sun: “Interview: RSG Amaechi

Leadership Nigeria: “Rsg Urges Lg Bosses To Embrace Micro-finance Scheme

The Tide News: “‘Okada’ ban: RSG deploys 64-seater buses to ease movement” “Micro-finance: RSG earmarks N3bn for local govts

UNHCR (MRG): “World Directory of Minorities and Indigenous Peoples – Nigeria: Overview

Similar Posts: