the local government headquarters (Adegbola & Gaul, 2012). 2.2.4 Nigerian Government Policy on Microfinance Industry Nigeria has a population of about 160 million people. Of the 160 million people, 121 million (70%) are living below poverty level. Given this, the government has identified
microfinance as not only an important source of financing for the poor people but also as way to eradicate poverty in the country. In recognizing the importance of microfinance to the economic and social development of the country, the Central Bank of Nigeria (CBN) launched the National Microfinance Policy, Regulatory and Supervisory Framework (NMPRSF) in 2005 to encourage both the establishment as well as the development of microfinance institutions (MFIs) in the country. However, in 2011, after a comprehensive review of the development in the microfinance industry, the CBN formulated the National Microfinance Development Strategy (NMDS) to overcome the shortcomings found in the earlier National Microfinance Policy, Regulatory and Supervisory Framework. The NMDS was developed to enable the stakeholders in the microfinance industry to efficiently and effectively perform their roles, responsibilities and further improve the accessibility of the financial products and services to the poor people in Nigeria. Among the important objectives of the NMDS include the following: a. To cover 65% of the economically active population by year 2020.
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- Summer '17
- Poverty, CBN, Microfinance Banks