1. Islamic Micro-finance in Nigeria Issues and Prospect
Salaudeen Jubril Abdullahi

2. Outline Nigeria in brief Microfinance in Nigeria
Efforts at Micro-Financing
Islamic Microfinance
Issues with Islamic microfinancing
Opportunities in Islamic Microfinancing

3. Nigeria Population: 173.6 million (2013) Area: total: 923,768 sq km
land: 910,768 sq km
water: 13,000 sq km
Currency: Naira
GDP: $ billion (nominal; 2015) $1, Billion (PPP; 2015)
Official Language: English and French

4. Micro-Financing in Nigeria
Perceived deficiencies in the existing financing schemes for the poor and small businesses.
Existing community banks and NGO microfinance licenced by CBN for operations in 2007
Over 40% of the licenced MFB have failed
Frowning at interest on loans due to religious
Withdrawal of 224 microfinance banks license in 2010

5. Efforts of the past Financial dualism: Poverty and Unemployment
Rural banking scheme,
Peoples Bank,
Operation feed the nation (OFN),
Green revolution,
Nigerian Bank of Commerce and Industry (NBCI),
Nigerian Agricultural and Cooperative Bank,
Nigerian Economic Reconstruction Fund (NERFUND),
Nigerian Directorate of Employment (NDE),
Family Economic Advancement Programme (FEAP),
Poverty Alleviation Programme (PAP),
Nigerian Industrial Development Bank (NIDB)
Bank of Industry (BOI),
Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB),
Community banking and
Microfinance banking

6. Islamic micro-finance in Nigeria
The CBN sent out an Exposure Guidelines on the Regulation and Supervision of Non Interest (Islamic) Microfinance Banks in Nigeria May, 2016
We have a few groups who have piloted and they are quite encouraging
Muslims are focused in Food production and there are small farm holders which is a ready market

7. Issues with Islamic Micro Finance
Lack of basic infrastructure compounds the operational difficulties of these banks
Lack of Skilled labour to operate and manage Islamic microfinance bank
Poor banking culture in the rural areas and among the urban poor
Lack of awareness and promotion for Islamic Finance by regulators and practitioners

8. Islamic Microfinance Prospects
About 70% of the population engaged in the informal sector or agricultural production
Government’s renewed interest and improved regulatory environment in the microfinance sub-sector
Nigerian Muslims are looking forward to have Islamic Microfinance Institutions

9. Opportunities The new phase of licensing by the CBN
Training and Development opportunities
Opportunities for Takaful and Micro-Takaful
Opportunities for Islamic Venture Capitals
Opportunities for Investors who are looking at green fields
Consulting opportunities
Infrastructure Development opportunities

10. Summary Islamic Micro-Financing has strong potentials in Nigeria
There is a need for capacity development for Islamic Microfinance in Nigeria
Education of the Mases is required
Regulation are being put in-place for ease of operations
The timing for new entrance is now

11. Thank You Salaudeen Jubril
End of Presentation
Thank You Salaudeen Jubril