Operations launched in Nigeria
31-03-2011
Oikocredit has officially launched operations in Nigeria, a West African country with around 70% of its population living below the poverty line (est. 2007).
The expansion to Nigeria reinforces Oikocredit's long-term development strategy to increase support and investment in microfinance institutions, agricultural cooperatives and small and medium enterprises across Africa. Oikocredit made the decision to open the office and start operations after an extensive market study in 2009. The study confirmed demand for microcredit and mesofinance in the country far outweighed the supply. Following the results, Oikocredit country manager Nigeria Ufuoma Eghwerehe was appointed last year and has been preparing for the official launch of the office, in the south-western city of Lagos.
The level of outreach to microenterprises by microfinance institutions in Nigeria is low, yet with a population of 155 million the industry holds enormous potential. In the past three years, the Nigerian government developed a framework for microfinance institutions, resulting in over 800 institutions becoming licensed. These 800 organizations serve approximately one million customers. Many more millions of microenterprises are locked out of traditional banking and remain unable to access microcredit because MFIs struggle to grow due to a lack of funding.
Oikocredit aims to bolster existing microfinance institutions, cooperatives and SMEs with loans, and actively support start-up organizations that will reach more entrepreneurial poor. As well as financing, Oikocredit will promote best practice in social performance management among new partners in Nigeria.
Nigeria
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Population: 155,215,573 (est. 2011)
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Capital name: Abuja
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Religion: Muslim 50%, Christian 40%, indigenous beliefs 10%
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Languages: English (official), Hausa, Yoruba, Igbo (Ibo), Fulani, over 500 additional indigenous languages
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Government type: Federal republic
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Independence: 1 October, 1960 (from UK)
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Agricultural products: cocoa, peanuts, cotton, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yams, rubber; cattle, sheep, goats, pigs; timber; fish
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Industries: crude oil, coal, tin, columbite; rubber products, wood; hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, ste
Source: CIA World Factbook