presentation on rural finance institution- building programme (rufin)

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PRESENTATION ON RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

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PRESENTATION ON RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN). What Is RUFIN Set Out To Do ?. To Alleviate Poverty With A Particular Focus On The Rural Poor And Especially Women, Youths And The Physically Challenged. What Is RUFIN All About?. It’s a 7 year programme designed to - PowerPoint PPT Presentation

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Page 1: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

PRESENTATION

ON

RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Page 2: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

What Is RUFIN Set Out To Do ?

To Alleviate Poverty With A Particular Focus On The Rural Poor And Especially Women, Youths And The Physically Challenged

Page 3: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

What Is RUFIN All About?

It’s a 7 year programme designed to• Develop and strenthen RMFI’s• CAPACITATE MFB’s• ESTABLISH LINKAGES BETWEEN rmfi,s AND

FORMAL INSTITUTIONS• Creat viable and sustained rural financial system• Guarantee credit facility to RMFI by MFB &

commercial banks• Refinance RMFIs through MFBs

Page 4: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Expected Outputs and Targets• 408,000 households in 36 LG (11,000 per LG) of

rural poor to be economically empowered• 72 new viable cooperative savings and credit

union (COSACU) will be developed • 200 existing ones to be strengthened.• Establish & strengthen apex organizations for

(MFBs) & (MFIs).• Over 1500 chairpersons, secretaries, treasurers,

committee & ordinary members of the MFI’s to be trained.

Page 5: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

….Expected outputs

• Train women on enterprise analysis as basis for accessing credit from microfinance banks or MFIs

• Train and promote women to take leadership roles in MFIs

• Address legal and policy issues which discriminate against women in participating in cooperatives

• RUFIN will promote member based MFIs by giving woman opportunity to form MFIs where they lead

Page 6: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Programme coverage

• 12 States– North Zone States: Bdamawa, Bauchi, Katsina, Zamfara– Central Zone States: Benue, Nasarawa, Lagos, Oyo– Southern Zone States: Anambra, Imo, Edo, Akwa-ibom

• 3LG from each state• 36LG involved• 3 Zonal Offices

– Northern Zone :- Kaduna– Central Zone :- Lokoja– Southern Zone :-Benin

Page 7: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Access to Finance Model

345,000 families 138,000 woman-

headed households small-holders,

farmers, craftsmen and petty traders.

MFBsRMFIs

Coops

Page 8: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Program Components

Component 1: Develop MBRMFI

Sub-component 1: Improve Policy, Legal &

Institututional Framework For RMFI

Sub-component 2: Capacity Building For MBRMI & Apexes

Sub Component 3: Promotion Of Linkage Program

Component 2: Institution Building

Of Mfbs

Sub-component1: Institution Building For Mfbs

Sub-component 2: Capacity Building Of Non-bank Mfis

Subcomponent 3: Support To NACRDB

Sub-component 4: Implementation Support, Regulation & Supervision Of MFB

Component 3: Framework For Microfinance Development

Subcomponent 1: Access To Re-finance Facilities

Sub -Component 2: Develop Apexes For MFBs & Umbrella Organizations

Sub-component 3: Research And Documentation And Policy Dialogue

Component 4: Program

Management, Coordination, M&E

Subcomponent 1: Establishment Of PMU

Sub -Component 2: M&E And Policy Support To Implementation

Page 9: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Project FinanceSOURCE $’000 % TYPE

IFAD 27,175.3 67.9 Loan

IFAD 400.5 1.0 Grant

FORD 500.0 1.3 Grant

FGN 11,923.9 29.8 Equity

TOTAL 39,999.7 100

Page 10: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

RUFIN Stakeholder Roles

• Policy coordination & improvement via MAB of DFD • Licensing of MFBs• Registration of non bank MFIs and RMFIs• Draw-up guidelines for self regulation• Develop guideline for formation of apexes• Data management and information systems• Linkage program• Establish and manage Microfinance Development Fund MDF

CENTRAL BANK OF NIGERIA DFD, OFID & RSD

• Training, mainstreaming & promotion of non-bank MFI & RMFIs linkage

SERVICE PROVIDERS

• Review and establish new national policy framework for RMIs, SGs, SACAs, COSASs and apex Organizations

• Establishment of RMFIs, cooperative, savings and credit cooperative organisations (SACCOS), savings and credit associations (SACA), COSACS

• Review curricula of cooperative training colleges & institutes• Manage study tours for cooperatives

FEDERAL DEPT OF COOPERATIVES

Page 11: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

RUFIN Stakeholder Roles

• Support project implementation and monitoring• To link the target beneficiaries to the funds generated.• To plan, supervise and monitor the scheme• To develop credit products to support mf policies• To train staff to ensure timely implimentation, close monitoring and progress

reporting.

NAPEP

• Support project implementation and monitoring• An initial assessment study of the bank operation with the view of re-engineering/

empowering it to improve its operational efficiency and have a sustainable and better service to agric. And rural micro enterprise.

• Training of relevant staff • Provision of technical support in the development of new products , strenthening

old ones and other emerging banking technical issues that would enhance service delivery.

• Provision of relevant mis facilities

NACRDB

• Support project implementation and monitoringNON-BANK MFIS

• Support project implementation and monitoringRMFIS

Page 12: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Institutional Framework

Stakeholders

PMU

CBN

FDC

NAPEP

NACRDB

MWA

Banks

MFIs

RMFIs

Page 13: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Licensed MFBs in Project States

MFB CB – MFB New % Cum % Lagos 159 58 101 38.4 38.4Anambra 86 69 17 20.8 59.2Oyo 46 42 4 11.1 70.3Imo 41 39 2 9.9 80.2Edo 25 23 2 6.0 86.2Bauchi 12 9 3 2.9 89.1Benue 12 6 6 2.9 92.0Akwa Ibom 11 7 4 2.7 94.7Adamawa 8 7 1 1.9 96.6Zamfara 6 6 0 1.4 98.1Katsina 5 4 1 1.2 99.3Nasarawa 3 3 0 0.7 100.0Total 414 273 141 100.0% 65.9 34.1

Page 14: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

MFB Intervention Model

AGrowth

& Outreach

BMarket Refocusing

C

Performance

Monitoring

Eligibilit

y and

Selecti

onRegulation and

Supervision

Apex

Market Refocusing

Methodology

Manpower

Page 15: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

MFB Reform & Repositioning

Eligibility & Selection– Expression of interest by the MFBs based on RUFIN terms and

conditions– Rural & microenterprise markets focus – Focus on MFB’s willingness to reposition– Compliance based eligibility– Technical support based on agreed targets & performance milestones

Comprehensive baseline institutional diagnosis– Capacity needs assessment– Participatory intervention plan– Microfinance banking repositioning plan

On-going performance rating– PEARLS rating for cooperatives– CAMEL rating for MFBs

Page 16: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

MFB Reform & Repositioning

Market, Methodology & manpower– Product remix– Process redesign– Delivery methodology and process– Growth and outreach milestones

Regulation and Supervision– International performance and local regulatory standards

• Portfolio• Efficiency• Profitability• Financial Structure

– Sustained performance monitoring

Page 17: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Key Issues 86% of the MFBs in four states namely Lagos, Anambra, Oyo,

Imo & Edo.– What priorities for SPMUs – Pareto law?

Few MFB partners in Nasarawa, Katsina, Zamfara, and Adamawa– Attracting MFB investment?– Expand outreach of existing ones

Selection criteria for MFBs to differ in high & low concentration MFB states.

This makes Cooperatives the most effective and even channel of outreach in all states

Page 18: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Cooperatives

Growth through mergerso 1-2 societies into 300-500 member societieso 1-4 societies into 1500-2000 unions o 1 CFA per state

Develop professional management and governance Training and capacity building Improved savings Better management

Page 19: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

State of the StatesState Coordinating

Ministry/Dept. Letter Of Intent For

Participation Participating LGA Counterpart Fund Office

ADAMAWA Agriculture Commitment letter provided

Maiha; Hong; Shelleng Approved but not released

NA

AKWA-IBOM Agriculture Commitment letter provided

Essien Udim; Onna LGA; Itu

Approved and released NA

ANAMBRA Agriculture Provided Awka North; Ayamelum; Orumba North

Approved but not released

NA

BAUCHI Agriculture Provided Ningi, Bauchi, Katagun Approved but not released

NA

BENUE Rural Development and Cooperatives

Provided Apa; Logo; Gwer-West In process Provided

EDO Agriculture Provided Etsako West,Orhiomwon, Esan North

In process Acquired

IMO Agriculture Provided Ezinihitte, Isiala Mbano, Ideoto

Approved but not released

Acquired

KATSINA

LAGOS Agriculture and Coperative

Not Provided Epe; Ikorodu; Badagry In process NA

NASARAWA Agriculture and Natural Resources

Provided Doma, Wamba, Nasarawa

Approved but yet to be released

Acquired

OYO Agriculture Natural Resources and Rural

Development

Not Provided Yet to be Provided Approved but yet to be released

Acquired

ZAMFARA Agriculture Provided Gusau, Bukkuyum, Talata mafara

Approved but yet to be released

Acquired

Page 20: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Immediate Steps

Draft PIM – address eligibility & selection, “rules of the game”

Baseline surveyoMFB o Coopso RMFIo CB rural branches

Sector needs assessment M&E design

Page 21: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

Needs Assessment & Baseline Determine data needs of all components Identify Past, Current & On going studies

– Cooperatives– RMFIs– MFBs– MFIs

__________________________________________________o Institutional & managemento Operational & Performanceo Market & growtho HR and skillso Curriculum & training areas.

Page 22: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

M&E Objectives

– Basis for assessing performance of the Project; – Accountability on achievement of objectives– Foundation for modifying programs over time – Compare planned vs. actual performance

• Design Parameters– Participatory Approach: Involve stakeholder– Review logical framework and validate indicators– Develop data collection, analysis & reporting tools: Data gathering

templates and quality standards– Develop guidelines for project evaluation and impact: – Milestone reviews: periodic - monthly 1/4ly or annual– Baseline Survey: sync with Log frame, M&E data needs

Page 23: PRESENTATION ON  RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

……….Design Parameters

• Design Reports and Other Methods of Communicating Results: weekly, monthly, quarterly, biannual and annual

• Data Collection Strategy: data on output/impact– Records of MFIs – Enterprise level surveys– PMU records

• Provide resources for implementation• Set up and handover• On-going management