Fidelity Bank Plc, a commercial bank based in Nigeria has forged a partnership with the Nigerian-German Business Group (NGBG) to host a business forum on ‘Funding MicroFinance Banks’ on January 15th, 2009 in Lagos, Nigeria. According to a press release found on NigerianBulletin.com, this partnership between Fidelity Bank and NGBG is intended to facilitate the entry of the Dutch microfinance organization, OikoCredit International into the Nigerian market. The press release stated that the CEO of Oikocredit International, Mr. Tor Gull, would lead other prominent experts in microfinance at the business forum to discuss ways to ‘shore up the capacity’ of Nigeria’s microfinance banks. The discussion would also unveil OikoCredit’s plan of expansion in Nigeria. According to the release, OikoCredit would set up a regional office in Nigeria and serve as a forum of exchange between its officials and key players in Nigeria’s small and medium enterprise sector, cooperative societies, microfinance and regulatory authorities. No further detail on the event or its participants is currently available.
The Dutch organization OikoCredit Ecumenical Development Cooperative Society U.A. was established in 1975 to encourage churches and church-related organizations to serve the interests of the poor by giving credit and loans as opposed to donations. Oikocredit finances a total of 445 MFIs in Africa, Asia, Latin America and Eastern Europe. It finances both well-established and grassroots MFIs spread across nearly 69 countries. More information on the projects funded by OikoCredit can be found here. As of September 2008, OikoCredit was involved in a total of 476 microfinance projects and disbursed loans worth EUR 171.4 million between January and September 2008. OikoCredit’s strategic partners include Terrafina Microfinancing in the Netherlands, ICCO, the Argentinean organization Ecumenical Microfinance for Human Development (ECLOF) and the Church of Sweden.
According to the World Bank, Nigeria has nearly 70 percent of its population living in poverty with more than 54 percent living below the poverty line (less than one US dollar a day). The 2008 Human Development survey of the United Nations ranks Nigeria among the 25 poorest countries, measured on the basis of standard of living, life expectancy and literacy. According to this MicroCapital story, only 12 out of the 36 Nigerian states have contributed to MicroFinance activities in Nigeria. The story reports that the Nigerian government, NGOs and Nigerian MicroFinance Institutions (MFIs) have been making efforts to increase the country’s number of institutions offering microcredit. In April 2008, the Lagos State Government announced a new microfinance bill which makes it mandatory for all local governments in the state to contribute a minimum of one percent of their allocations to the operations of the State’s microfinance banks. More details on the bill can be found in this MicroCapital story.
Fidelity Bank Plc began operations in 1988 in Nigeria as a merchant bank and later converted to a commercial bank in 1999. Fidelity offers a range of banking services across 85 branch offices in Nigeria. Its operations are divided into 4 key sectors (p2), namely Business Banking (encompassing Consumer Banking, Corporate Banking and Treasury functions of the bank), Investment Banking and Public Sector, Shared Services and Risk Management. In 2005, Fidelity merged with FSB International Bank Plc (FSB) and Manny Bank Plc to meet the capital requirement imposed by the Central Bank of Nigeria (CBN). No individual website for the two banks is available. MicroCapital also recently reported on microfinancing in Nigeria and the efforts of the CBN to regulate Nigerian MFIs. As of 2008, Fidelity Bank had a total capital of USD 1.2 billion. The press release on NigerianBulletin.com states that Fidelity Bank has established partnerships with microfinance organizations in Nigeria, but no information on these partnerships is publicly available.
The Nigerian German Business Group (NGBG) is an organization that promotes better trade and business ties between Germany and Nigeria. It assists the Nigerian Government to promote small scale entrepreneurship in Nigeria and provide financial empowerment for its citizens, organizes trade events for various industries and promotes leadership training among Nigerian youth. More information on their services can be found here. No information on their financial data is available.
By Bharathi Ram, Research Assistant
Additional Resources:
Microcapital.org:
Nov 3, 2008: Only 12 of 36 Nigerian states contribute to Microfinance activities
Apr 29, 2008: Lagos State Government announces new Microfinance Legislation
Dec 23, 2008: Kings MFB disburses 50 million Naira worth of loans to 5000 Nigerians
Nigerian German Business Group
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