The Federal Government Enterprise and Empowerment Programme (GEEP) MarketMoni interest-free loan scheme has now successfully reached over 300,000 beneficiaries in all 36 states of Nigeria, and the Federal Capital City, as at May 2018. The loans range between N10,000 and N100,000.
GEEP MarketMoni is a Social Intervention Programme (SIP) of the Federal Government of Nigeria, executed by the Bank of Industry (BOI), a parastatal of the Federal Ministry of Industry, Trade and Investment. It commenced in December 2016. BOI was given the responsibility to reach at least 1.6 million beneficiaries with the backing of the current administration. So far, the institution has recorded thousands of beneficiaries in all states of the federation and has consistently disbursed to thousands every two weeks.
GEEP MarketMoni directly impacts traders, market women, artisans, and farmers nationwide. Beneficiaries typically belong to an accredited market association or cooperative group registered with their state’s Corporate Affairs Commission. They are required to own a bank account, a bank verification number and a mobile phone. The loan, which only attracts a five per cent one-time administrative charge, is repayable within a period of six months, with two weeks grace period.
The scheme is also helping to deepen financial inclusion in Nigeria as it targets the underbanked and unbanked. Most applicants for the micro loans are micro entrepreneurs, petty traders, farmers and youth in urban and rural areas who are poorly integrated. Out of the over 300,000 beneficiaries recorded, about 150,000 were first time bank account holders. The GEEP MarketMoni scheme also focusses on financially empowering women. A study by International Finance Corporation has shown that the average growth rate of women-owned MSMEs in developing countries is significantly lower than the average growth rate of those run by men.
Sixty per cent of loans disbursed under the GEEP MarketMoni scheme are targeted at women-owned businesses. Prioritising women micro entrepreneurs has become imperative because of the role they play in the society. Women are also more represented in small and informal business segments. Targeting them not only accelerates the programme’s direct impact on job opportunities, it also results in poverty alleviation.
GEEP MarketMoni was established to accelerate economic development by focusing on microenterprises, which have been greatly impeded by lack of access to funds and opportunities for expansion. Microenterprises significantly contribute to Nigeria’s Gross Domestic Product (GDP).
GEEP MarketMoni is currently the most ambitious microcredit scheme in the history of Nigeria, and the largest in Africa.
Uloma Ike
Group Head (Microenterprise)
Bank of Industry
