Micro Credit

Introduction

Background Information

The necessity for a viable micro-credit scheme in the Catholic Archdiocese of Ibadan among the vulnerable groups became obvious following series of needs assessment, interviews and field visits carried out within the Archdiocese of Ibadan between 2001 and 2002. This situation analysis later led to the establishment of an organised micro-credit scheme in the Archdiocese of Ibadan in January 2003 making use of available local resources.

Result of the Situation Analysis

  1. There are few existing non-governmental organisations within the Archdiocese of Ibadan running a similar programme
  2. Majority of the resource poor are illiterate and lack such collateral always requested by financial houses
  3. They posses near zero capacity for savings, family upkeep and children education as well as poor saving culture
  4. In some desperate attempt to stay alive, they go to local money lenders whose interest rates are sometimes as high as 40%

Overall Objective

To stimulate the economic empowerment of the active resource poor artisans, market women groups in the Archdiocese of Ibadan.

Specific Objectives

  1. To promote a saving culture among members
  2. To increase the financial sustainability of group members
  3. To improve the standard of living of the beneficiaries

Procedure for Group Registration

  1. Group mobilisation
  2. Screening and collection of baseline data
  3. Group registration

Activities

  1. Savings mobilisation
  2. Loan disbursement and Loan recovery
  3. Training programme: entrepreneurship, income management, leadership roles and conflict management
  4. Group assessment / screening of performing groups from one phase to another

POLICY

5-YEAR GROUP ANALYSIS ACCORDING TO LOAN PHASES

2009

2008

2007

2006

2005

Phase I

36

51

29

50

35

Phase II

31

30

21

34

31

Phase III

33

20

18

12

6

Phase IV

27

13

5

-

-

Phase V

7

3

-

-

-

Phase VI

2

-

-

-

-

Total

136

117

73

96

72

Gender Analysis of Beneficiaries M/F

325/2,166

272/2,222

201/1,421

405/1,660

355/1,210

Total Number of Beneficiaries

2,491

2,494

1,622

2,065

1,565