The Microfinance Sector in Nigeria

This report examines the Nigerian microfinance sector and highlights the major challenges it faces. It states that since the advent of microfinance in the country, the sector has dealt with the severe consequences of the global financial crisis. The report notes that the number of MFIs in Nigeria is increasing at a rapid rate in response to the growing need for financial services to the poor, but the legal framework for these institutions is relatively new and its ability to regulate this sector is yet to be proven. It covers the following sections in detail:

• Overview of the microfinance sector in Nigeria with a focus on the microfinance regulatory framework in the country;
• Impact of the global financial crisis on the microfinance sector in Nigeria;
• Structure and dynamics of the microfinance sector;
• Discussion on the major challenges in the microfinance sector including frequent changes in government policies, lack of human capital with adequate requisite, and widespread corruption;
• Conclusion and recommendations for regulators, promoters, practitioners, and other stakeholders.