STAMP Programs

DARC in partnership with ILO brings

"Making Microfinance Work"

Microfinance has been recognized as having potentials to galvanize national economic growth by supporting the economic activities of the poor, and thus contributing to poverty reduction. This can only be achieved when there are strong microfinance institutions in the country. To meet the challenges of growth and sustainability, managers of microfinance banks should understand not only the essential management functions, but also be equipped with innovative ideas and strategies to succeed in today's increasingly competitive environment.

Development Alternatives and Resource Center (DARC) has successfully partnered with the International Training Center of the International Labour Organization (ITC ILO) with support from Ford Foundation, West Africa, to hold series of trainings for microfinance banks' managers. The series also included a certification process for Nigerian trainers, enabling the successful candidates to train on the ILO course. This training arose out of the need to build the capacity of the microfinance sector following the Central Bank of Nigeria (CBN)'s introduction of 'The Microfinance Policy, Regulatory and Supervisory Framework for Nigeria launched in 2005'. This policy led to the recapitalization of community banks and transformation to microfinance banks, as well as the licensing of several new microfinance banks. By the end of September 2008, over 800 microfinance banks had been given final approval or approval in principle by the CBN.

The first part of these series of microfinance trainings was held at Grangehill Hotel, Abuja from April 7-18, 2008. During this program, a total of 17 microfinance managers from different institutions were trained. They were joined by 8 trainer candidates for the preliminary stage of the certification process.

The opening remarks were made by Mr. Kola Durojaiye, representative of the Director of the Other Financial Institutions Department (OFID), Central Bank of Nigeria (CBN), and (Mrs) Folashade Ayonrinde, the Officer-in-Charge, International Labour Organization, Abuja. Both speakers emphasized the importance of the course to the microfinance sector and urged the participants to take the training serious and use what they learn to make positive impact on the sector.

The first training was delivered by Ms. Cheryl Frankiewicz and Ms. Petronella Chigara, who are certified international trainers from ITC ILO Turin, Italy. The modules delivered in this course covers Introduction to Microfinance Management; Markets and Marketing; Managing Risks; Organizational architecture; and Towards Greater Efficiency and Productivity.

From July 2-6, 2008, the second stage of the certification process for the Nigerian trainers was held from July 2 to 6, 2008 at Elomaz Hotel, Maryland, Lagos. During this period, selected trainer candidates were trained to understand the practice and methodology of ITC ILO training and the use of standard applications for capacity building in microfinance. These trainers were given the opportunity to facilitate one module from "Making Microfinance Work" manual and their deliveries were evaluated by both co-participants and a master trainer from ITC ILO, Turin, Italy, Ms. Sahar Tieby. At the end of this phase, four trainers qualified for the final phase.

The local facilitators who were selected for the final certification process at the Making Microfinance Work training, Ijebu Ode were Mrs. Edna Ishaya, Founder/CEO, Center for Microenterprise Development, Lagos; Dr. Stephen Ogidan, Managing Consultant, Successory Nigeria Ltd., Kaduna; Mr. Bulus Gwashi, Director of Programmes, School of Microfinance and Enterprise, Jos; and Mr. Nuhu Danjuma, Chief Project Officer( Training, Research & Business Development Services), Center for Microenterprise Development, Lagos.

From the 13th to 24th of October, 2008, the local trainers collectively trained 25 microfinance managers at Gateway Hotel Ijebu Ode in a lively, highly interactive and intensive 2 weeks program. Ms. Sahar Tieby, the master trainer from ILO was also on hand to work with the facilitators. This marked the final stage of the certification process.

The participants were welcomed by the Representative of Ford Foundation office for West Africa, Dr. Adhiambo Odaga. Dr. Odaga who made the opening remark urged the participants to impact the knowledge acquired at the training in improving the performance and standard of their institutions to enable microfinance effectively work in their local environment. The Executive Director of DARC, Ms. Ngozi Ezi-Ashi also welcomed the participants and the trainers. She emphasized the need to build effective microfinance sector in Nigeria which she said is part of DARC's mission aimed at promoting microfinance in the country.

During the course of the training, participants were taken for an excursion to Farmers Development Union (FADU) at Ijebu-Igbo, Ogun State on the 18th of October, 2008. The excursion was organized for the participants to appreciate the service of microenterprise development for the rural poor and micro producers. FADU is a non-governmental organization and a rural development organization. Its program activities focus at rural peasants, and enhancement of their managerial capacities to operate small-scale farming and non-farming enterprises.

At the end of the very exciting and informative training, the participants though exhausted by the intensity of the work, were happy, fulfilled and grateful to the organizers of the program. A warm closing remark was made at the end of this training by the Executive Director of DARC. She expressed her heartfelt thanks to Ford Foundation and ILO for their support in the delivering of this course in Nigeria and making the program a successful one. The participants at the program confirmed that the training was an eye opener for them in the microfinance sector. The overall objective of this training was to strengthen the microfinance institutions in Nigeria and to enable microfinance providers deliver better services in their environment.

Ms. Cheryl Frankiewicz, facilitating at the Phase I training

Ms. Petronella Chigara facilitating at the training at the Phase I training

Ms. Sahar Tieby making a speech

Participants at the Phase III workshop

Ijebu-Ode participants at group

Standing from the right: Ms. Ezi-Ashi; Dr. Ogidan; Mrs. Ishaya; Mr. Danjuma and Mr. Gwashi

Visit to Farmers Development Union at Ijebu-Igbo, Ogun State

DARC in partnership with ICAN

As a follow up in providing professional support to microfinance audit function Development Alternatives and Resource Center (DARC) in collaboration with the Institute of Chartered Accountants of Nigeria (ICAN), Ikeja District, organized Microfinance Audit Training Workshop. The training was held on the 28 & 29 May, 2008 at Elomaz Hotel, Maryland, Lagos. This training was targeted at both internal and external auditors of microfinance banks aimed at building the audit function as a key piece to institutional development.

The training was formally declared open with a welcome address by the Executive Director of DARC, Ms. Ngozi Ezi-Ashi. Ms. Ezi-Ashi who outlined the importance of the training, made an emphasis on the previous Microfinance Institutions' External Audit training organized by DARC on 22 - 30 October, 2007 in collaboration with Central Bank of Nigeria (CBN) and Consultative Group to Assist the Poor (CGAP), Washington D.C were 134 participants were trained on best practice on microfinance auditing.

An opening remark at this training was made by Mr. Wole Ojeyinka, the Chairman, ICAN Ikeja District and was followed by a presentation on the Overview of Development of Microfinance Industry in Nigeria by Ms. Ihuoma Chuks-Ugwuegbu, DARC Head of Programs

The training was facilitated by Mr. Eric Naivasha, a certified CGAP trainer and Managing Director of K-Rep Advisory Service, Kenya. In his delivery, Mr. Naivasha laid emphasis on effective internal control system and advised the auditors to be honest, make suitable documentations and accounting records, and proper procedures for processing transactions. He said that the reason why auditors have not delivered desired results in the past is because of lack of supervision and auditors' purpose was not understood. He mentioned other reasons like weak information system and internal controls, minimal compliance with normal standards, inadequate ownership and governance structure, and microfinance business not well understood. All these he said are what have affected the function of the audit system.

DARC hosts Roundtable meeting for BRAC

Development Alternatives and Resource Center (DARC) hosted a Roundtable Meeting/dinner for the team from Bridging Resources Across Communities (BRAC), Bangladesh and a cross section of the microfinance community in Lagos, on July 8, 2008 at Sofitel the Moorhouse, Ikoyi. The objective was to exchange ideas towards development of sustainable microfinance sector in Nigeria.

The meeting started with a documentary film show on BRAC and her program activities. This was followed by introduction of the guests and a welcome speech by Ms. Ngozi Ezi-Ashi, executive director of DARC. The BRAC team comprised Dr. Fazle Hasan Abed, the founder and chairperson of BRAC; Mr. Aminul Alam, deputy executive director of BRAC; Mr. Imran Matin, director of BRAC Africa, and Prof. Leslye Obiora, former minister of mines and steel development, Nigeria. Prof. Obiora is currently a Professor of Law, James E. Rogers College of Law, the University of Arizona, U.S.A.

During the welcome address, Ms. Ezi-Ashi, the executive director of DARC, enumerated the history of BRAC and the fact that they have achieved phenomenal success using a holistic approach to poverty alleviation in Bangladesh. She also informed the gathering that Dr. Abed is in Nigeria to interact with the key players in the Nigerian development sector with the aim of seeking areas of possible collaboration, exposing development workers to their unique approach for poverty alleviation, and setting up a BRAC Nigeria. She suggested that the audience should ask critical questions to learn the principles that have helped them succeed.

Dr. Abed who addressed the participants said that BRAC was established for poverty alleviation and empowerment of the poor. He specifically told their success story and various strategies adopted by BRAC to approach rural transformation through its microfinance program.

PHOTOSPEAK OF THE ROUNDTABLE MEETING WITH BRAC HOSTED BY DARC ON JULY 8, 2008 AT SOFITEL THE MOORHOUSE, IKOYI, LAGOS

From Left: Mr.Aminul Alam(Deputy Executive Director of BRAC), Mr. Imran Matin (Director of Research & Evaluation Division, BRAC), Mr. Fazle Hasan Abed (Founder/Chairperson of BRAC), Ms Ngozi Ezi-Ashi (Executive Director, DARC)

Prof. Leslye Obiora(Left) with cross section of microfinance practitioners at the roundtable discussion forum

Cross section of microfinance service providers at the roundtable meeting

MTN Capacity Building Project

Development Alternatives and Resource Center (DARC) entered into partnership with MTN Foundation to implement a capacity building project for the MTN Foundation partners. The project was aimed at strengthening the institutional development of these organizations and promoting experience sharing among the partners. 21 MTNF partner organizations were trained in Lagos from March 26-31, 2007 on program planning and management.

This training was followed by the launching of the MTN Foundation Partners Network. The network was launched on the 5th of March, 2007 at Sickle Cell Center, Idi-Araba, Lagos.