Business
Group Tasks FG On Poverty Reduction
A non-governmental group, Media Development Initiative (MDI), has urged the Federal Government to develop a practical framework to reduce poverty this year.
The President of the body, Mr Simeon Nwakaudu, made the call in an interview with newsmen in Abuja, recently.
He said the unemployment rate in Nigeria, which he put at about 70 per cent, was responsible for the wide spread poverty in the country.
“Something needs to be done fast about this development. You see, some countries even with five per cent unemployment rate, have sleepless nights.” You will see them working fervently towards reducing it.
The country’s present national indices are not encouraging. The Federal Government must quickly rise to the occasion in the New Year to drastically reposition the standard of living of its people.
This will entail serious political will to fight corruption in high and low places of the economy,’’ he said.
On the promotion of small scale entrepreneurs, Nwakaudu said the country would not achieve much if electricity generation and distribution were not improved upon.
He explained that the group had empowered over 2,000 rural dwellers in the Middle Belt region of the country to become self-reliant.
“We assisted them with funds and business plans but most of them failed to follow our framework as according to them, irregular electricity supply worked against them.
The government must divide the country into business clusters and depend less on its ministries and agencies in order to reach the critical mass.
The government must also reduce its focus on international investors to ensure the encouragement of family businesses as this is the only way to impact on the citizenry. Japan, China and most countries in Asia depend on this model,’’ Nwakaudu said.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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