By THE Edo State Government, through the Ministry of Business, Trade, and Cooperatives, has reaffirmed its commitment to creating a more supportive environment for the operations of microfinance cooperatives in the state.
The Permanent Secretary in the ministry, Barr. (Mrs) F. N. Edokpolor, made this known during the maiden edition of the Microfinance Cooperatives Engagement, held at the John Odigie Oyegun Public Service Academy (JOOPSA) on Okada Avenue, Benin City.
Barr. Mrs. F. N. Edokpolor
In her welcome address, Mrs Edokpolor acknowledged the challenges faced by the microfinance sector and assured participants of the ministry’s readiness to foster robust collaboration to ensure the smooth running of their operations.
“The Edo State Government, through the Ministry of Business, Trade, and Cooperatives, recognises 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.”
Dr Osarenren Aigienohuwa,
During his lecture, Dr Osarenren Aigienohuwa, Chairman of the Association of Non-Bank Microfinance Institutions 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.
Ojo Filani
“However, despite our successes, we continue to face challenges that threaten our sustainability and effectiveness.”
He identified limited access to funding, “short-termism” in microfinance management, and weak corporate governance as key issues hindering the development of microfinance cooperatives.
As solutions, he recommended the implementation of long-term strategic planning for sustainable growth, increased microfinance funding, advocacy for government-backed loan schemes, and encouragement of public-private partnerships to attract impact investors into the sector.
He also stressed the need to develop internal savings mobilisation strategies to reduce dependence on external funding.
Mr Joel Edionwe
On his part, a former Permanent Secretary in the ministry, Mr Joel Edionwe, explained the difference between microfinance cooperatives and microfinance banks.
According to him, the clarification was necessary to avoid misconceptions.
He outlined strategies for strengthening microfinance cooperatives, including capacity building, financial inclusion, technological innovations, and regulatory support.
He encouraged participants to take advantage of such engagements, as they offer valuable and beneficial insights.
Mrs Efeoma Enoma
The Director of Cooperatives, Mrs Efeoma Enoma, reiterated the ministry’s commitment to engaging with microfinance cooperatives to understand their challenges and provide solutions.
She emphasised the government’s recognition of their role in supporting SMEs and the need to facilitate access to affordable funding. She assured stakeholders that the ministry was ready to collaborate to ensure a sustainable and prosperous future.
Mrs Enoma also encouraged cooperatives to comply with legal frameworks without fear, assuring them of the ministry’s support. Additionally, she highlighted the ministry’s arbitration department, which helps resolve disputes and ensures smooth operations.
Other speakers included representatives from the German Agency for International Cooperation (GIZ) and Prudent Microfinance Bank.
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