Governor of the Rivers State of Nigeria, Chibuike Rotimi Amaechi, recently announced that Rivers State Government (RSG) has allocated the equivalent of USD 47.6 million to finance small and medium-sized enterprises. RSG has not specified how the funds will be delegated but in its previous micro-credit schemes, RSG has disbursed funds through commercial banks and microfinance institutions (MFIs). Amaechi stressed the RSG’s commitment to ensuring funds reach the poor, admitting that RSG still needs to “develop a system” in order to reach the poor, especially rural women. The micro-credit scheme is part of a larger empowerment program to increase education, health care and social service infrastructure.
The funds for a micro-credit scheme have been budgeted through three separate branches of the government: The Women Affairs Commissioner contributed the equivalent of USD 12.97 million, the Governor’s office gave the equivalent of USD 17.3 million and the State Sustainable Development Agency added the equivalent of USD 12.97 million.
The new commitment was announced at a Women’s Summit in Port Harcourt, the capital of Rivers State. Rural women are considered a main target of the micro-credit scheme, with USD 12.97 million being allocated specifically for female micro-entrepreneurs.
Established in 1967, Rivers State is one of Nigeria’s 36 states. RSG’s micro-credit schemes began to be formed in 2005. Rivers State’s division of the national government’s multi-partner micro-finance fund (MP-MF) was launched with the equivalent of USD 16.3 million in 2006. In May 2007, RSG reports that its micro-credit scheme had expanded to 44 communities within the state. MicroCapital reported on a microfinance investment by Exxon Mobil to Rivers State residents here.
By Sarah Knapp, Research Assistant
Additional Resources:
MicroCapital: Exxon Mobil Loans $130,000 to Eleven Nigerian Microfinance Institutions, October 13, 2006.
National Poverty Eradication Program (NAPEP): NAPEP partners RSG in N26bn micro-credit scheme, June 14, 2006.
Rivers State: Rsg Sets Aside N5.5bn For Micro-Finance Scheme, RSSDP Gets Legal Status
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