Nigeria

Community Conversation Leads to Creation of Micro-Finance Bank

Aguda Oke-ira community in Ikeja, Lagos State on Saturday 11 August 2007, took a bold leap from discussing bird flu and the attendant health hazards and economic implications for their semi-urban community to creating a micro-finance bank to support and boost wealth creation activities. The inauguration of the small loans bank was a sequel to a UNDP project on Community Capacity Enhancement (CCE) Methodology started in 2006 as its contribution towards efforts to prevent and manage bird flu.

According to Moses Ogunkunle, the CCE lead facilitator for the Ikeja Group, the Aguda-Oke ira community held a number of meetings in which community members discussed in depth the challenges posed by the bird flu and the possibility of a pandemic. The community recognizing the threat to their lives that bird flu could pose, agreed to discontinue the raising of backyard poultry in this densely populated area and to request Government to officially prohibit it. Recognizing this would have implications for the livelihoods of members of the community, they then decided on establishing the Micro Finance Bank to give access to capital to those in need.

Coordinator of the banking project, Mr. J. A. Oyedeji, who spoke at the inauguration said the bank would not be just another community bank owned by a few individuals, but rather every community member would have a chance, and be expected to be a share holder, acquiring a minimum share holding of N1000. He said the plan is to raise N25 million Naira, exceeding the Central Bank requirement for setting up a micro finance bank by N5 million, the extra which would be used to register and run the bank.

UNDP Resident Representative a.i. Ms Mary Symmonds addressing the community people during the inauguration of Aguda Oke-ira Micro Finance bank.

UNDP Resident Representative a.i. Ms Mary Symmonds

who was present at the inauguration, expressed satisfaction that the community from discussing bird flu, was able to come up with the bold vision of a micro finance bank. She said that UNDP was piloting the Community Conversation Enhancement methodology in two states, Lagos and Kaduna, and in four local governments. The methodology creates space for all actors in the community to discuss, decide and take action on issues affecting them. She shared with the steering committee the central bank policy and guidelines documents for setting up a micro-finance bank, and advised that they could get in touch with Lift Above Poverty, LAPO, and Justice, Peace and Development Commission, JPDC, two civil society organisations that UNDP has supported and enhanced their capacity to facilitate micro finance.