PRESENTATION ON RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

1. PRESENTATIONON RURAL FINANCE INSTITUTION- BUILDING PROGRAMME (RUFIN)

2. 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

3. 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 • Creatviable and sustained rural financial system • Guarantee credit facility to RMFI by MFB & commercial banks • Refinance RMFIs through MFBs

4. 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.

5. ….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

6. 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

7. Access to Finance Model

8. Program Components

9. Project Finance

10. RUFIN Stakeholder Roles

11. RUFIN Stakeholder Roles

12. Institutional Framework

13. Licensed MFBs in Project States

14. MFB Intervention Model Eligibility and Selection Regulation and Supervision Apex Market Refocusing Methodology Manpower

15. 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

16. 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

17. 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

18. Cooperatives • Growth through mergers • 1-2 societies into 300-500 member societies • 1-4 societies into 1500-2000 unions • 1 CFA per state • Develop professional management and governance • Training and capacity building • Improved savings • Better management

19. State of the States

20. Immediate Steps • Draft PIM – address eligibility & selection, “rules of the game” • Baseline survey • MFB • Coops • RMFI • CB rural branches • Sector needs assessment • M&E design

21. Needs Assessment & Baseline • Determine data needs of all components • Identify Past, Current & On going studies • Cooperatives • RMFIs • MFBs • MFIs __________________________________________________ • Institutional & management • Operational & Performance • Market & growth • HR and skills • Curriculum & training areas.

22. 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

23. ……….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