BANKING SECTOR AND POVERTY ALLEVIATION IN NIGERIA
The Nigerian Government has been doing all the necessary option to continuously alleviate poverty by developing a massive income generating activities and employment scheme. They have being doing this for the last decades although they are still far from reaching their goal to decrease the family who are suffering from hopelessness, scarcity and famine. The National Accelerated Food Production Program (NAFP) together with the Nigerian Agricultural Cooperative Bank (NACB) during the early 80’s has been contributing their fund to promote health, agriculture and fisheries in the lives of many people in their society.
They have joined together to promote awareness about the economic condition and what the people can do to help themselves. There are also various individual and group organizations who would teach modern farming techniques for the farmers to produce a more sustainable livelihood and crops production. Children are also taught in their school the importance of industrial and farm recreation sustainability.
The People’s Bank of Nigeria (PBN) and the Community Bank of Nigeria (CBN) have set- up various poverty alleviation programs in Nigeria during the mid 80’s additionally the Directorate of Food, Road and Rural Infrastructure headed by General Babangida. All their programs are aim to uplift the lives of people by constructing roads, electricity, water sanitation and toilets for local communities but they have realized that they have not lived up to their expectations when some people have dominated the funding of most projects. During this time corruption was rampant, the project funding was taken away to the people so they are still left in poverty. There have been many organized funds by some other bank during the early 90’s to early year of 2000 but most of them did not materialized but most of this funds have been manipulated and corrupted by some government officials and other workers.
This has a recorded history of Nigeria but as of now the Nigerian Banking Sectors have been recovering the past situation by construction a more reliable fundings and these funds will be used directly for private organization and development. Banks and private sectors are organized to boost economic growth and poverty alleviation, generating revenue, better infrastructure and social service. All this programs will be handled by private sectors to initiate the development. This doesn’t mean that do not trust the government but this means that they can control more of funds and where it will go. The Bank Programs will include; Provision of overdraft loans, privatized project management, promotion and investment of land for agricultural reform, technical support for individual business enterprise that is capable of expansion, micro-financing for groups and individual.
The Nigerian Banking Sectors (NBS) is of course endorsed and supported by the Nigerian Government but they have realized the Public Private Partnership (PPP) for a more transparent evaluation and liquidation of funds. The Nigerian Banking Sectors have also developed an information organization for technical assistance, coordination of resources and inter partnership relay of marketing, training and advices for farmers. Oceanic Bank (OB) as one of their partners will participate in common goals to initiate basic projects like energy development or electricity reform, port and maritime reform and others. European Investment Bank (EIB) will also launch the infrastructure of Trust Fund for mobilization and poverty alleviation for the next few years they have designed a plan to double their contribution.
The Small and Medium Enterprise (SME) will also be included in the programs to uplift the industry position of enterprising groups or individual. This program will aim to encourage the communities to create their own businesses and expand even more for employment generation and alternative livelihood. They will be provided with short term and continues loan depending on their business needs. They have started this project as early as 2007 and some beneficiaries are Megito Ventures Limited – a textile company that has grown to expand its factory production and capacity, Industrial Park Development to warehouse the participant banks and members.
Lastly the Micro-financing company in Nigeria will that has been operating for decades will continue to be active in investing funds for entrepreneurial poor. They have been providing funds for entrepreneurial poor in groups or individual loan. Some Micro-financing institution of Nigeria includes; SUSU Micro-finance, River state, First Global, Wize trade, Integrated, MIC, Osun state college of technology, Esa Oke Osun, Harcourt and other micro-financing firms have been investing for Nigeria to reduce the poverty stricken community and to help people live a more decent life.
The Central Bank of Nigeria and other Micro-financing industry that focuses on indigenous people have provided additional investment last 2005 for the benefit of the community development and women’s welfare.