Citibank Nigeria and Citi Foundation, two arms of US-based financial services provider Citigroup, have announced the creation of the Citi Microenterprise Development for Rural Farmers Initiative (CMDRFI), a capacity-building and microlending scheme for smallholder farmers in Nigeria. The initiative will provide capacity building and microfinance. A pilot program in Gagbasawa local government areas in the state of Kano is to be launched in 2012, with plans to expand the program throughout Nigeria. The budget for the project has not been released.
Citibank’s Nigeria-based partners in the project are: Growing Business Foundation, a nonprofit organization providing capacity building and financial access to poor people in Nigeria; Kano State Agricultural Development Agency, a governmental entity that promotes improved infrastructure, farming methods and farm management practices; and the International Institute for Tropical Agriculture, a nonprofit research company that develops agricultural solutions for alleviating poverty in Africa. The Central Bank of Nigeria will provide consultation for the initiative.
The 24 Nigerian microfinance institutions that report to the US-based nonprofit Microfinance Information Exchange (MIX) report a total gross loan portfolio USD 84.4 million disbursed to approximately 482,000 active borrowers as of 2010.
By Charlotte Newman, Research Associate
About Citi Foundation
The Citi Foundation provides grants and guarantees focusing on the areas of microfinance, small and growing businesses, education, asset building and neighborhood revitalization. As of 2009, Citi Foundation reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 65.8 million of which USD 12.3 million of is allocated to 152 investments. Citi Foundation is the charitable arm of US-based financial services provider Citigroup.
About Central Bank of Nigeria
The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the Act of Parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of July 2011, CBN reports total assets of NGN 8.37 trillion (the equivalent of USD 54 billion).
Sources and Additional Resources:
Vanguard: “Citibank Announces Micro Lending for Small Holder Farmers,”
http://www.vanguardngr.com/2012/02/citibank-announces-micro-lending-for-small-holder-farmers/
MicroCapital.org story, February 10, 2012, “MICROCAPITAL BRIEF: Plans Still on for Nigeria to Create Microfinance Development Fund in 2012,” https://www.microcapital.org/microcapital-brief-plans-still-on-for-nigeria-to-create-microfinance-development-fund-in-2012/
MicroCapital.org story, January 9, 2012, “MICROCAPITAL BRIEF: Nigeria’s National Association of Microfinance Banks (NAMB) Asks Government Not to Set Up Microlenders,” https://www.microcapital.org/microcapital-brief-nigerias-national-association-of-microfinance-banks-namb-asks-government-not-to-set-up-microlenders/
MicroCapital Universe Profile: Citi Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Citi+Foundation
MicroCapital Universe Profile: Central Bank of Nigeria
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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