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Happy micro credit beneficiary

Happy micro credit beneficiary

The micro-credit and business development programme was started in 1998 to help empower communities and enable entrepreneurs take advantage of the economic opportunities in their locality. This goal is being pursued through three broad categories of service: community-based enterprises, micro-credit schemes and youth business development programmes.

Implementation is by using the group (cooperative) model and the revolving loan approach. The programme is facilitated by local NGOs and mentor beneficiaries. Micro Finance Banks have been introduced for improved monitoring and repayment.

The micro-credit programme has helped more than 30,000 people establish or expand businesses. In 2009, 27 new micro-credit schemes enabled 2,700 women and young people to set up smallscale businesses. These loans typically help small business owners like local market women to buy more goods.

The scheme has received external commendation, with the Delta State Government adopting the model in the implementation of their micro-credit programme.

The Olomoro story

Olomoro community was given N1.6 micro credit seed fund in 2004, from which some 200 people benefitted. The beneficiaries embarked on several income generating projects and successfully repaid the loans. The same seed fund (plus interest) was re-cycled to other groups thereby increasing the total number of beneficiaries.

The seed fund has been re-disbursed about 6 – 7 times among the women in Olomoro community, increasing the total sum to about N3.8m in 2009. The Olomoro example demonstrates accountability and community ownership of the micro credit scheme.

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