PRESENTATION
ON
RURAL FINANCE INSTITUTIONBUILDING 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
RMFIs
Coops
MFBs
345,000 families
138,000 womanheaded households
small-holders,
farmers, craftsmen
and petty traders.
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
%
TYPE
IFAD
27,175.3
67.9
Loan
IFAD
400.5
1.0
Grant
FORD
500.0
1.3
Grant
FGN
11,923.9
29.8
Equity
TOTAL
39,999.7
100
RUFIN Stakeholder Roles
CENTRAL BANK OF NIGERIA DFD, OFID & RSD
• 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
SERVICE PROVIDERS
• Training, mainstreaming & promotion of non-bank MFI & RMFIs linkage
FEDERAL DEPT OF COOPERATIVES
• 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
RUFIN Stakeholder Roles
NAPEP
• 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.
NACRDB
• Support project implementation and monitoring
• An initial assessment study of the bank operation with the view of reengineering/ 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.
NON-BANK
MFIS
• Provision of
relevant mis facilities
• Support project implementation and monitoring
RMFIS
• Support project implementation and monitoring
Institutional Framework
Stakeholders
PMU
CBN
FDC
NAPEP
NACRDB
MWA
Banks
MFIs
RMFIs
Licensed MFBs in Project States
MFB
Lagos
Anambra
Oyo
Imo
Edo
Bauchi
Benue
Akwa Ibom
Adamawa
Zamfara
Katsina
Nasarawa
Total
%
159
86
46
41
25
12
12
11
8
6
5
3
414
CB – MFB
58
69
42
39
23
9
6
7
7
6
4
3
273
65.9
New
101
17
4
2
2
3
6
4
1
0
1
0
141
34.1
%
38.4
20.8
11.1
9.9
6.0
2.9
2.9
2.7
1.9
1.4
1.2
0.7
100.0
Cum %
38.4
59.2
70.3
80.2
86.2
89.1
92.0
94.7
96.6
98.1
99.3
100.0
MFB Intervention Model
C
Performance
Monitoring
B
Market
Refocusing
A
Growth
&
Outreach
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 300-500 member societies
o 1-4 societies into 1500-2000 unions
o 1 CFA per state
 Develop professional management and governance
 Training and capacity building
 Improved savings
 Better management
State of the States
Letter Of Intent For
Participation
Commitment letter
provided
Commitment letter
provided
Counterpart Fund
Office
ADAMAWA
Coordinating
Ministry/Dept.
Agriculture
AKWA-IBOM
Agriculture
ANAMBRA
Agriculture
Provided
Awka North; Ayamelum;
Orumba North
Approved but not
released
NA
BAUCHI
Agriculture
Provided
Ningi, Bauchi, Katagun
NA
BENUE
Rural Development and
Cooperatives
Provided
Apa; Logo; Gwer-West
Approved but not
released
In process
Provided
EDO
Agriculture
Provided
Etsako West,Orhiomwon,
Esan North
In process
Acquired
IMO
Agriculture
Provided
Ezinihitte, Isiala Mbano,
Ideoto
Approved but not
released
Acquired
Agriculture and
Coperative
Agriculture and Natural
Resources
Agriculture Natural
Resources and Rural
Development
Agriculture
Not Provided
Epe; Ikorodu; Badagry
In process
NA
Provided
Doma, Wamba,
Nasarawa
Yet to be Provided
Approved but yet to be
released
Approved but yet to be
released
Acquired
Gusau, Bukkuyum, Talata Approved but yet to be
mafara
released
Acquired
State
Participating LGA
Maiha; Hong; Shelleng
Approved but not
released
Essien Udim; Onna LGA; Approved and released
Itu
NA
NA
KATSINA
LAGOS
NASARAWA
OYO
ZAMFARA
Not Provided
Provided
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
o
o
o
o
Institutional & management
Operational & Performance
Market & growth
HR and skills
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