Challenges of Microfinance Banking in Nigeria
CHALLENGES OF MICROFINANCE BANKING IN NIGERIA-1
Nigerians, like many other Africans are generally known as their brother’s keepers in view of the extended family system. But when truly analyzed, there is a possibility that this may not be so? Perhaps a hypothetical deep may reveal that not up to 10% of Nigerians would invest in ventures or people that would yield them nothing in return and here I mean, “Returns in the short run or in the immediate”. The returns may be financial, emotional, spiritual, relational or social. But fact is, there is something the investors expect in return when they give and these could include being worshipped as personal heroes, fear of harassments, fear of being harmed, for family ties, religious ties, being perceived as a caring corporate organization with the intent of bigger business tickets etc. Hardly do the “Nigerian rich” set aside a portion of their riches for the “unknown poor” or for true charity except such gifts are meant to make them be seen by the Society or Divinity as good or circumvent some threatening harms etc. This anti-poor behavior is projected into organizations; corporate, social, religious and sometimes even Government and parastatals as people see only the short end of developments without heeding the social woes of economic imbalance and insecurity.
Consequent upon my above beliefs, I may classify the challenges of Microfinance banking in Nigeria under five (5) main headings:
1. COMMUNICATION GAPS AND INADEQUATE AWARENESS
As a background to the undeniable problem of communication for effective microfinance, listen to this quote by Stan Paris on his article on Microfinance As A Means of Reaching The People “Problems of communication are endemic in the industry, dating back to what could be considered the first micro-loan. In 1976, Muhammad Yunus, a young economics professor at Chittagong University, Bangladesh, took his students into a small village where he discovered a woman crafting beautiful
Nigerians, like many other Africans are generally known as their brother’s keepers in view of the extended family system. But when truly analyzed, there is a possibility that this may not be so? Perhaps a hypothetical deep may reveal that not up to 10% of Nigerians would invest in ventures or people that would yield them nothing in return and here I mean, “Returns in the short run or in the immediate”. The returns may be financial, emotional, spiritual, relational or social. But fact is, there is something the investors expect in return when they give and these could include being worshipped as personal heroes, fear of harassments, fear of being harmed, for family ties, religious ties, being perceived as a caring corporate organization with the intent of bigger business tickets etc. Hardly do the “Nigerian rich” set aside a portion of their riches for the “unknown poor” or for true charity except such gifts are meant to make them be seen by the Society or Divinity as good or circumvent some threatening harms etc. This anti-poor behavior is projected into organizations; corporate, social, religious and sometimes even Government and parastatals as people see only the short end of developments without heeding the social woes of economic imbalance and insecurity.
Consequent upon my above beliefs, I may classify the challenges of Microfinance banking in Nigeria under five (5) main headings:
1. COMMUNICATION GAPS AND INADEQUATE AWARENESS
As a background to the undeniable problem of communication for effective microfinance, listen to this quote by Stan Paris on his article on Microfinance As A Means of Reaching The People “Problems of communication are endemic in the industry, dating back to what could be considered the first micro-loan. In 1976, Muhammad Yunus, a young economics professor at Chittagong University, Bangladesh, took his students into a small village where he discovered a woman crafting beautiful