The United Nations’ International Fund for Agricultural Development will provide USD $27 million in debt capital to support the expansion of microlending activity in Nigeria, with the goal of creating a sustainable rural financial system in the West African nation. Co-financed with nonprofit Ford Foundation, the financing aims to build ties between Nigerian MFIs and formal financial institutions in twelve Nigerian provinces. While Nigerian MFIs currently provide services to a variety of demographics, IFAD hopes that the capital infusion will particularly improve access to financial services to women, young people, and other marginalized groups. It is unclear whether IFAD’s financial assistance will be allocated to a Nigerian government agency such as central bank, or if it will be allocated directly to MFIs operating in-country.
The International Fund for Agricultural Development (IFAD) is an agency of the United Nations, established during the 1970s as a response to a food crisis in Africa. IFAD’s mission is to eradicate rural poverty in developing countries by working with governments, NGOs and other partners to increase access to financial services, technology and other resources. Since its inception, IFAD has invested USD 9.8 billion in 751 programs and projects that have reached over 310 million impoverished women and men.
Chartered in 1936 by Henry and Edsel Ford, the Ford Foundation is a nonprofit organization that seeks to “strengthen democratic values, reduce poverty and injustice, promote international cooperation, [and] advance human achievement”. Toward this end, the foundation makes grants to institutions and individuals that can advance these causes. In fiscal year 2007, the foundation reported total assets of USD 13.7 billion, and had approved USD 530 million in grants.
By Ryan Benson, Research Assistant
Additional Resources:
eGOV monitor: UN Rural Development Arm helps strengthen Nigeria’s microfinance institutions
AllAfrica: Nigeria: Microfinance – IFAD Okays N3.2 Billion Loan to Country
IFAD: Home
IFAD: Rural Finance Institution Building Programme
Ford Foundation: Home
Ford Foundation: 2007 Financial Statements
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