Micro-Finance

As at December 31 2004, loans were disbursed in twelve (12) states of the federation, namely: Abia, Akwa Ibom, Edo, Enugu, Kwara, Lagos, Delta, Oyo, Ogun, Ebonyi, Cross Rivers and Rivers. About NGN 152 million was extended as non-collaterized credit to Two Thousand Three Hundred and Fifty (2,350) loan beneficiaries covering four of Nigeria's six geo-political zones. GBF loan portfolio has increased from NGN 50,000.00 by December 2000 to about NGN 152 million in 2004. GBF also aims to build the image of micro-entrepreneurs as creditworthy, and to establish financial practices that minimize the transaction costs of processing small loans by commercial banks. Some of its projects are outlined below:

More information: Details of Our Projects. – Summary of Credit Activities.

Market Linkages

• GBF is working with a non-governmental organization
  for the mentally ill in Abia state, to explore ways off marketing their pottery to the private sector as corporate festive seasons gifts. About NGN 1 Million was realized as proceeds from increased sales in 2001, this would go towards the upkeep of the mentally ill.

• GBF worked with American International Insurance Company (AIICO)
  to develop micro-insurance policies for small-scale entrepreneurs. Most recently, GBF facilitated the application of micro-insurance policies in the USAID TIME program against loss of life and accident for 400 beneficiaries of micro-finance institutions in Ibadan and Lagos.

Networking and partnership building

• PricewaterHouseCoopers:
  PricewaterhouseCoopers, in collaboration with Growing Businesses Foundation, has offered its services in the form of business advice and strategic planning to NGOs, including micro finance institutions (MFIs), to enhance their credibility and facilitate their integration into the formal financial sector. PWC intends to audit the Catholic Institute For Development, Justice And Peace (CIDJAP) and its 4 affiliates, and has developed a template for auditing of MFI books. They have worked with CIDJAP to develop financial template towards the proposed audit of their financial statement from 2002.
• Five Talents International:
  Growing Businesses Foundation in September 2004 received the Executive Director, Five Talents International (FTI), Bishop Craig Cole, who was on an official visit to Nigeria. The visit was a round up of a performance monitoring of FTI partnership with Imo Self Help Organization (ISHO), a community based non-profit/ non-governmental organization dedicated to community development among the rural/urban poor in the society and also by promoting sound micro- enterprise principles within the Anglican Church, specializing in micro financing and promoting sound micro-enterprise principles within the Anglican Church. In 2001, GBF was appointed as consultants to Five Talents International for the purpose of performing due diligence on ISHO based on which a $60,000 grant was extended to ISHO for capacity building and micro finance. Bishop Cole thanked GBF for facilitating the partnership and urged for future collaborations between the two
• Mobil Producing Nigeria Unlimited:
  Growing Businesses Foundation's focus on development of the Niger Delta through public/private partnership that will empower the people and promote a participatory development process got a boost of about N40million ($385,000) from Mobil Producing Nigeria Unlimited (MPN) in 2002 MPN also donated N30million and N40million in 2003 and 2004 respectively. MPN, a pioneer member of Growing Businesses Foundation and one of the foremost oil operators in Nigeria, donated the grants to GBF's latest initiative on community-based programs to invest in the Niger-Delta. As a member organisation of GBF, MPN's involvement in the economic development of Nigeria through this initiative has no doubt been in accordance with its belief in GBF's vision of sustainable economic development led by socially responsible businesses.

  GBF is also in the process of conducting consultations and needs assessment activities in the Kingdom of Bonny, Rivers State. Discussions are underway to determine the actual objectives of the survey focus sector and target population. Mobil Producing Nigeria Unlimited operators of the NNPC/MPN Joint Venture in Bonny is again at the forefront of this latest development, other stakeholders also involved include the Bonny Kingdom Development Council, HRM The King of Bonny, Chief's Council, the local government Chairman and other members of the community as a whole.

• United Nations Development Program (UNDP):
  Growing Businesses Foundation was appointed national consultant for the national launch of the Human Development Fund by UNDP. HDF is a pet project of the UNDP, designed to build public private partnerships that help the poor and vulnerable segments of the Nigeria population and this is synonymous with the objectives of GBF. The main aim and purpose of the HDF is to mobilize resources and build a coalition of development partners that will make significant contributions to national efforts aimed at reducing the population in extreme poverty by half by the year 2015. The executive Director of GBF is also a member of UNDP National Partnership Forum (NPF). GBF is on the national board of the HDF.
• Nigerian Communications Commission (NCC):
  In December 2000, the Nigerian Communications Commission (NCC) commissioned the design of a universal access program to promote rural telecom through the establishment and licensing of community based owned telecom service providers. Toward this end, the Growing Businesses Foundation was recommended by USAID to NCC to facilitate the organization of community consultations and inform the process of providing access to telecommunication in rural communities. In addition, the National Telephone Cooperative Association (NTCA) was asked to provide the NCC with a strategic plan for the Universal Access Program and to apply its knowledge and experience to developing a program to realize the universal access policy objectives of the Nigerian Communications commission. The consultations continue in 2002.
• MTN Nigeria Communications Limited:
  The Community Phone project was launched by MTN/GBF in Enugu State at the 5th MDC workshop in April 2002 with 5 "Ogene ladies". OGENE, which means "town-crier" in the Ibo language is name adapted for the Ibo speaking region in Nigeria. The MTN micro-Credit product (which consists of Handset, MTN SIM and Recharge cards) is given to empower selected women in various communities to enable them provide access to telecommunication to their rural communities for a fee thereby improving universal access. After the initial launch, a total of 155 ladies have benefited from the project across the following states Edo, Akwa Ibom, Kwara, Oyo and Enugu. In 2005, the project will expend it operations to Borno, Kano, Adamawa and the Federal Capital Territory.
• Micro-Insurance Scheme:
  Growing Businesses Foundation has work with AIICO Insurance Plc, intermediating insurance policies to micro-entrepreneurs across the country. Building upon the first 4000 policies intermediated in the year 2000 in collaboration with USAID Time Program to Lift Above Poverty Organisation (LAPO), Farmers Development Union (FADU) and Country Women's Association of Nigeria (COWAN). GBF intermediated policies to approximately 4000 loan beneficiaries of Lift Above Poverty Organization (LAPO), and many more of the entrepreneurs financed through its partner MFIs. The insurance scheme comprises key man insurance policies, intended to mitigate the risk of lending to small businesses as well as alleviate the burden on the family of the insured, should an unexpected ailment or accident result in the disability or death of the insured.
• Nigerian International Bank (formerly Citibank):
  Citibank Nigeria (now known as Nigerian International Bank) in the last quarter of 2002 approved and extended a grant of USD60, 000.00 to Growing Businesses Foundation, to encourage community business skills, by assisting local artisans in the expansion of their business activities. The project took off in 2003 with a loan of N3million to the National Cane Weavers Association of Nigeria in Lagos. This fund was disbursed to over 50 members of the Association and repayment is currently ongoing. The Glok Tailors Association based at Egbeda, Lagos also got a loan of N1.5million in 2004. More CBOs will benefit from this project.
• Ogbagi-Akoko Community Consultation:
  Growing Businesses Foundation in March 2003 held a consultative forum with community members of Ogbagi-Akoko with the primary aim of establishing a sustainable skills training, capacity building and micro credit scheme. The consultation had in attendance 208 persons, which included all proposed beneficiaries from twelve identified community groups.

  GBF's partnership with other stakeholders in this project will be to support sustainable development of Ogbagi-Akoko and those living around the locality through skills training and micro credit scheme seeking to achieve:

  • Access to credit and people empowerment
  • Increase in income levels in rural families
  • Reduced number of unemployed youths
  • Increased capacity for entrepreneurial initiative and wealth generating activities
  • Institutional support for sustainable business initiatives
  The proposed project is expected to highlight the concerns of rural dwellers as well as proffering viable and sustainable solution pioneered by socially responsible organizations and individuals. The catalytic role of the then CBN Governor, Dr. Joseph Sanusi, of aggregating diverse resources to be of assistance to the Ogbagi-Akoko community serves as credible pointer towards sustainable ideas aimed at grassroots development.

Capacity Building

1. Micro-Enterprise Development Co-operation:
   The Micro enterprise Development Cooperation (MDC) is a brainchild of the Catholic Institute for Development Justice and Peace (CIDJAP) and the Growing Businesses Foundation (GBF). MDC was borne out of the commitment and belief that promoting development involves building capacity as well as providing access to credit. Since inception in January 2001, a total number of 407 participants have benefited from the MDC. The objective of the MDC is

   "To provide a platform for evaluating international best practices in micro-finance, and building self-reliant, sustainable financial intermediaries capable of nurturing micro-enterprises and growing these businesses into viable, socially responsible and culturally rooted small and medium scale enterprises".

2. Niger Delta Pilot Program:
   Growing Businesses Foundation's proposition to invest in the Niger Delta was initiated in 2002, with an initial grant of N40million from Mobil Producing Nigeria (MPN) Unlimited to empower community-based entrepreneurs, with focus on capacity building, business skills training and revolving loan facilities, particularly women and youths in Eket, Akwa Ibom State. A total number of 233 recipients benefited from the 1st Phase of the GBF/MPN Partnership. And following subsequent credit disbursements and objectives met, a second grant of N30million was again extended to GBF in 2003 to fortify this activity by investing in more people in the region, with another 367 entrepreneurs benefiting in this 2nd Phase of the program, making a total of 600 recipients as at December 2003. The program was designed based on previous consultations and needs assessment tours in the four MPN host communities namely: Eket, Esit Eket, Ibeno and Onna local government areas. GBF is set to extend the program to other communities in the Niger Delta, as plans are already underway to embark on similar consultations to localities both in Akwa Ibom and Rivers State. Concurrent performance measurement have been analyzed and evaluated to ascertain its long-term sustainability and effective replication in other communities, with relevant reports gathered based on principles of equity and transparency, aimed at achieving mutual benefit for all stakeholders involved. The program is expected to enter its 3rd Phase by the third quarter of 2004, with more focus on re-empowering groups that had benefited in the previous phases and have successfully repaid their loans; groups that are interested in developing a mutual project; community self-help groups involved in a particular project that serve the cause of its people and beyond; and agriculturally based projects with high potentials of income generation. To this end, proposals and business plans have been submitted to MPN for the need to embark on extensive agricultural based programmes with the setting-up of agricultural models farms to serve as Centres for replicating modern and best practices in crop and livestock farming, provide extension services and job creation for community people, particularly youths.

3. GBF is working with the Catholic Institute for Development, Justice and Peace (CIDJAP), Enugu to provide training and start-up credit to a range of beneficiaries including inmates of the Nigerian prisons, women entrepreneurs, small to medium scale businesses and rural financial intermediaries.

4. GBF has provided technical and financial support for income generating projects in waste paper recycling, the manufacture of bricks and roofing tiles from red earth, large-scale fish farming, bio-gas and organic manure production. [Our first pilot is Mayflower School, Ikenne -Ogun State]. Currently, the establishment is seeking corporate donations and support to expand these projects

5. VSO:
   GBF engaged the services of professional expertise from Voluntary Services Overseas (VSO) in 2002. The volunteer, Mr. Charles Walunywa, a Kenyan national, joined GBF as a Project Coordinator and is participating in the Niger-Delta Project in Eket, Akwa Ibom State.

6. COCA-COLA:
   Coca-Cola Nigeria Limited has appointed GBF as a trustee for the "Entrepreneurial Loan Scheme". This is a Micro Credit Scheme aimed at granting loans and credits to qualifying former employees of Coca-Cola who are the beneficiaries so as to enable them start new businesses or invest in already existing one. About N70million has been earmarked by Coca-Cola for this scheme, which will be operated as a revolving loan program. As trustee of this scheme, GBF is responsible for administration and management of the program. GBF will be working with Capacity Building NGO's like FATE Foundation and Support and Training Entrepreneurship Program (STEP) in executing this program.

Corporate Philanthropy

• GBF organizes an Annual Corporate Social Responsibility Conference with the main objective of raising awareness on the viability of Small and Medium Scale] Enterprises [SMEs]. Participants are drawn from the public and private sectors.
• GBF works with member organizations to develop business strategies that align their business objectives with their interest to serve and positively impact their immediate environment.

Research

• GBF worked with PricewaterhouseCoopers to establish financial standard and rating criteria for evaluating a range of micro and rural financial intermediaries.
• GBF was involved in the evaluating of global rating concept for the sustainable growth of businesses, under assignment by a German university.
• GBF is responsible for the design and collaboration of a database of micro-finance and rural financial intermediaries, in collaboration with the Central Bank of Nigeria.