Climate Change Compliant Microfinance Delivery in Nigeria
This paper highlights climate change challenges confronting microfinance delivery in Nigeria. It examines policy measures to finance small-scale famers’ efforts to mitigate and adapt to the effects of climate change.
The paper studies three key policy documents in Nigeria, namely, the microfinance policy regulatory and supervisory framework for Nigeria, the Nigeria Economic Empowerment and Development Strategy (NEEDS) and Nigeria’s First National Communication under The United Nations Framework Convention on Climate Change. It examines the extent to which these documents address the challenges of climate change to microcredit delivery.
The paper suggests that policymakers should reassess microfinance delivery mechanisms and make them compliant to climate change. Recommendations include:
- Introduction of climate change tax as a resource envelope to aid poor farmers affected by climate change;
- Creation of climate change funds to enable farmers to acquire mitigation and adaptation technologies;
- Building awareness of farmers regarding climate change challenges to microfinance delivery through the complementary services approach.
