Suitability of the ASA Model in Nigeria

This paper derives lessons on sustainability from ASA Bangladesh.

ASA has provided technical assistance to MFIs and NGOs in various countries since 1993. It has worked in Nigeria as a technical service provider since 2000. It acts as a microfinance operations consultant and assists MFIs in carrying out institutional reforms.

ASA International has been successfully operating an NGO MFI in Nigeria since 2009. Its methodology has proved to be successful and cost-effective. ASA has used standard, easy-to-use systems and technical assistance to build an operational base to deliver microfinance services. Insights from the ASA experience include:

• Sustainable and cost-efficient microfinance operations are a direct function of organizational architecture, operating processes and institutional culture;
• Implementing a cost effective methodology requires strong commitment from staff at all levels, with senior managers leading the process;
• Tight cost control, low transaction costs, high loan officer productivity and lean administrative structure can deliver financial services to millions of poor clients efficiently;
• MFIs must systematically cut costs across all levels of the organization;
• MFIs should avoid becoming top heavy, bureaucratic organizations.