The Edo state Government,through the Ministry of Business Trade and Cooperatives has spoken of its committment to fostering a more supportive environment for the operations of Micro Finance Cooperatives in the state.
Barr. F. N. Edokpolor ((PS, MBC)
The Permanent Secretary, in the Ministry, Barr. (Mrs) F. N. Edokpolor made the disclosure during the maiden edition of Micro-Finance Cooperatives Engagement, held at the John Odigie Oyegun Public Service Academy (JOOPSA), on Okada Avenue, in Benin City.
In her welcome, address, Mrs. Edokpolor pointed told participants that, the ministry was not oblivious of the challenges being face in the micro finance sector, she assured that the ministry is ready to for robots collaboration for a smooth running if their operations.
“The Edo State Government, through the Ministry of Business, Trade, and Cooperatives, recognizes and appreciates your impact. We are also aware of the challenges you face—funding limitations and policy concerns.
“Be assured that the Ministry is committed to fostering a more supportive environment for your operations.
“As we deliberate today, let us focus on practical solutions—exploring ways to improve funding accessibility, enhance cooperative policies, and strengthen partnerships. Our collective goal is to ensure the sustainability of MSMEs in our state”.
During his lecture, Dr. Osarenren Aigienohuwa, Chairman, Association of Non Bank Micro Finance Institution of Nigeria(ANMFIN), highlighted the roles and challenges Facing Non-Bank Microfinance Institutions (NBMFIs) in Nigeria and Proposed Solutions.
According to Dr. Osarenren,
“Microfinance cooperatives serve as vital enablers of financial inclusion, particularly in a developing economy like Nigeria. We bridge the gap for individuals, small businesses, traders, and rural communities—providing them with access to credit, savings, and investment opportunities”.
“In Edo State, the impact of microfinance cooperatives cannot be overstated. We have empowered small businesses, nurtured local entrepreneurs, and contributed significantly to job creation and economic growth”.
However, despite our successes, we continue to face challenges that threaten our sustainability and effectiveness”.
Microfinance institutions play a critical role in promoting financial inclusion, yet they face numerous challenges that hinder their growth and effectiveness.
He identified limited access to funding, “shorttermism” by microfinance management, weak cooperate governance among others as part of the challenges militating against the development of micro finance cooperatives.
He however proffered solutions to include, implement long-term strategic planning to ensure sustainable growth, encourage microfinace funding, advocate for government-backed loan schemes to support microfinance institutions, encourage public-private partnerships to attract impact investors into the sector, evelop internal savings mobilization ,strategies to reduce dependence on external funding among others.
On his part, a former permanent secretary in the ministry, Mr Joel Edionwe, took time to explain the difference between micro finance cooperatives and micro finance bank.
According to him, the clarification became necessary so as not to delve into controversy.
Strategy for strengthening micro finance cooperatives, include capacity building, finance inclusion, technological innovations and regulator support.
He encouraged participants to always make themselves available for such engagements as they stand to gain a lot of beneficial information.
Director of Cooperatives, Mrs. Efeoma Enoma, stated that the Ministry of Business, Trade, and Cooperatives is committed to engaging with microfinance cooperatives to understand their challenges and provide solutions.
She emphasized the government’s recognition of their role in supporting SMEs and the need to facilitate access to affordable funding. The ministry is ready to collaborate with all stakeholders to ensure a sustainable and prosperous future.
Mrs. Enoma also assured cooperatives of the ministry’s support, encouraging compliance with legal frameworks without fear. Additionally, she highlighted the ministry’s arbitration department, which helps resolve disputes and ensures smooth operations.
Other speakers included, representative from the German Agency for International Cooperation (GIZ) and Prudent Micro finance Bank.
