PRESENTATION ON RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

What Is RUFIN Set Out To Do ? To Alleviate Poverty With A Particular Focus On The Rural Poor And Especially Women, Youths And The Physically Challenged

What Is RUFIN All About? It’s a 7 year programme designed to Develop and strenthen RMFI’s CAPACITATE MFB’s ESTABLISH LINKAGES BETWEEN rmfi,s AND FORMAL INSTITUTIONS Creat viable and sustained rural financial system Guarantee credit facility to RMFI by MFB & commercial banks Refinance RMFIs through MFBs

Expected Outputs and Targets 408,000 households in 36 LG (11,000 per LG) of rural poor to be economically empowered 72 new viable cooperative savings and credit union (COSACU) will be developed 200 existing ones to be strengthened. Establish & strengthen apex organizations for (MFBs) & (MFIs). Over 1500 chairpersons, secretaries, treasurers, committee & ordinary members of the MFI’s to be trained.

….Expected outputs Train women on enterprise analysis as basis for accessing credit from microfinance banks or MFIs Train and promote women to take leadership roles in MFIs Address legal and policy issues which discriminate against women in participating in cooperatives RUFIN will promote member based MFIs by giving woman opportunity to form MFIs where they lead

Programme coverage 12 States – North Zone States: Bdamawa, Bauchi, Katsina, Zamfara – Central Zone States: Benue, Nasarawa, Lagos, Oyo – Southern Zone States: Anambra, Imo, Edo, Akwa-ibom 3LG from each state 36LG involved 3 Zonal Offices – Northern Zone :- Kaduna – Central Zone :- Lokoja – Southern Zone :-Benin

Access to Finance Model 345,000 families 138,000 woman- headed households small-holders, farmers, craftsmen and petty traders. MFBsRMFIsCoops

Program Components Component 1: Develop MBRMFI Sub-component 1: Improve Policy, Legal & Institututional Framework For RMFI Sub-component 2: Capacity Building For MBRMI & Apexes Sub Component 3: Promotion Of Linkage Program Component 2: Institution Building Of Mfbs Sub-component1: Institution Building For Mfbs Sub-component 2: Capacity Building Of Non-bank Mfis Subcomponent 3: Support To NACRDB Sub-component 4: Implementation Support, Regulation & Supervision Of MFB Component 3: Framework For Microfinance Development Subcomponent 1: Access To Re-finance Facilities Sub -Component 2: Develop Apexes For MFBs & Umbrella Organizations Sub-component 3: Research And Documentation And Policy Dialogue Component 4: Program Management, Coordination, M&E Subcomponent 1: Establishment Of PMU Sub -Component 2: M&E And Policy Support To Implementation

Project Finance SOURCE $’000 $’000%TYPE IFAD27, Loan IFAD Grant FORD Grant FGN11, Equity TOTAL39,

RUFIN Stakeholder Roles Policy coordination & improvement via MAB of DFD Licensing of MFBs Registration of non bank MFIs and RMFIs Draw-up guidelines for self regulation Develop guideline for formation of apexes Data management and information systems Linkage program Establish and manage Microfinance Development Fund MDF CENTRAL BANK OF NIGERIA DFD, OFID & RSD Training, mainstreaming & promotion of non-bank MFI & RMFIs linkage SERVICE PROVIDERS Review and establish new national policy framework for RMIs, SGs, SACAs, COSASs and apex Organizations Establishment of RMFIs, cooperative, savings and credit cooperative organisations (SACCOS), savings and credit associations (SACA), COSACS Review curricula of cooperative training colleges & institutes Manage study tours for cooperatives FEDERAL DEPT OF COOPERATIVES

RUFIN Stakeholder Roles Support project implementation and monitoring To link the target beneficiaries to the funds generated. To plan, supervise and monitor the scheme To develop credit products to support mf policies To train staff to ensure timely implimentation, close monitoring and progress reporting. NAPEP Support project implementation and monitoring An initial assessment study of the bank operation with the view of re- engineering/ empowering it to improve its operational efficiency and have a sustainable and better service to agric. And rural micro enterprise. Training of relevant staff Provision of technical support in the development of new products, strenthening old ones and other emerging banking technical issues that would enhance service delivery. Provision of relevant mis facilities NACRDB Support project implementation and monitoring NON-BANK MFIS Support project implementation and monitoring RMFIS

Institutional Framework Stakeholders PMU CBN FDC NAPEP NACRDB MWA Banks MFIs RMFIs

Licensed MFBs in Project States MFBCB – MFBNew% Cum % Lagos Anambra Oyo Imo Edo Bauchi Benue Akwa Ibom Adamawa Zamfara Katsina Nasarawa Total %

MFB Intervention Model A Growth & Outreach B Market Refocusing C Performance Monitoring Eligibility and Selection Regulation and Supervision Apex Regulation and Supervision Apex Market Refocusing Methodology Manpower

MFB Reform & Repositioning  Eligibility & Selection – Expression of interest by the MFBs based on RUFIN terms and conditions – Rural & microenterprise markets focus – Focus on MFB’s willingness to reposition – Compliance based eligibility – Technical support based on agreed targets & performance milestones  Comprehensive baseline institutional diagnosis – Capacity needs assessment – Participatory intervention plan – Microfinance banking repositioning plan  On-going performance rating – PEARLS rating for cooperatives – CAMEL rating for MFBs

MFB Reform & Repositioning  Market, Methodology & manpower – Product remix – Process redesign – Delivery methodology and process – Growth and outreach milestones  Regulation and Supervision – International performance and local regulatory standards Portfolio Efficiency Profitability Financial Structure – Sustained performance monitoring

Key Issues  86% of the MFBs in four states namely Lagos, Anambra, Oyo, Imo & Edo. – What priorities for SPMUs – Pareto law?  Few MFB partners in Nasarawa, Katsina, Zamfara, and Adamawa – Attracting MFB investment? – Expand outreach of existing ones  Selection criteria for MFBs to differ in high & low concentration MFB states.  This makes Cooperatives the most effective and even channel of outreach in all states

Cooperatives  Growth through mergers o 1-2 societies into member societies o 1-4 societies into unions o 1 CFA per state  Develop professional management and governance  Training and capacity building  Improved savings  Better management

State of the States State Coordinating Ministry/Dept. Letter Of Intent For Participation Participating LGA Counterpart FundOffice ADAMAWAAgriculture Commitment letter provided Maiha; Hong; Shelleng Approved but not released NA AKWA-IBOMAgriculture Commitment letter provided Essien Udim; Onna LGA; Itu Approved and releasedNA ANAMBRAAgricultureProvided Awka North; Ayamelum; Orumba North Approved but not released NA BAUCHIAgricultureProvidedNingi, Bauchi, Katagun Approved but not released NA BENUE Rural Development and Cooperatives ProvidedApa; Logo; Gwer-WestIn process Provided EDOAgricultureProvided Etsako West,Orhiomwon, Esan North In processAcquired IMOAgricultureProvided Ezinihitte, Isiala Mbano, Ideoto Approved but not released Acquired KATSINA LAGOS Agriculture and Coperative Not ProvidedEpe; Ikorodu; BadagryIn processNA NASARAWA Agriculture and Natural Resources Provided Doma, Wamba, Nasarawa Approved but yet to be released Acquired OYO Agriculture Natural Resources and Rural Development Not ProvidedYet to be Provided Approved but yet to be released Acquired ZAMFARAAgricultureProvidedGusau, Bukkuyum, Talata mafara Approved but yet to be released Acquired

Immediate Steps  Draft PIM – address eligibility & selection, “rules of the game”  Baseline survey o MFB o Coops o RMFI o CB rural branches  Sector needs assessment  M&E design

Needs Assessment & Baseline  Determine data needs of all components  Identify Past, Current & On going studies – Cooperatives – RMFIs – MFBs – MFIs __________________________________________________ o Institutional & management o Operational & Performance o Market & growth o HR and skills o Curriculum & training areas.

M&E  Objectives – Basis for assessing performance of the Project; – Accountability on achievement of objectives – Foundation for modifying programs over time – Compare planned vs. actual performance Design Parameters – Participatory Approach: Involve stakeholder – Review logical framework and validate indicators – Develop data collection, analysis & reporting tools: Data gathering templates and quality standards – Develop guidelines for project evaluation and impact: – Milestone reviews: periodic - monthly 1/4ly or annual – Baseline Survey: sync with Log frame, M&E data needs

……….Design Parameters Design Reports and Other Methods of Communicating Results: weekly, monthly, quarterly, biannual and annual Data Collection Strategy: data on output/impact – Records of MFIs – Enterprise level surveys – PMU records Provide resources for implementation Set up and handover On-going management