Antecedentes

The Government of Nigeria has identified microfinance as an effective tool for promoting better access of the poor, low income population and vulnerable groups to financial and social services, and broad based/strong economic growth. Microfinance enables poor people to expand their businesses, increase their revenues, and create employment. To put microfinance in proper perspective, the Nigerian Government launched the Microfinance Policy, Regulatory and Supervisory Framework for Nigeria on 15th December, 2005.

The following targets are conceived in the policy:

• Cover the majority of the poor but economically active population by 2020;
• Increase the share of micro credit as a percentage of total credit to the economy from 0.9 percent in 2005 to at least 20 percent in 2020;
• Increase? the share of micro credit as a percentage of GDP from 0.2 percent in 2005 to at least 5 percent in 2020;
• Promote the participation of at least two-thirds of state and local governments in micro credit financing by 2015;
• Improve women?s access to financial services by 5% annually; and
• Increase the number of linkages among universal banks, development banks, specialized finance institutions and microfinance banks by 10% annually.

The policy also provides for the setting up of private sector driven microfinance banks (MFBs), as a main instrument of the envisaged enhancement in the provision of financial services.
The achievement of the objectives of the policy in general and of setting up the microfinance banks in particular depends on proper, timely and coordinated implementation. Since the launching of the policy, various stakeholders have been keying into the Nigeria microfinance landscape, albeit with inadequate synergy owing to lack of detailed articulation of stakeholder roles and responsibilities. Allowing this to continue might lead to dissipation of energy, resources, skills and other forms of support to the sector, and hence, sub-optimal performance.

A mid-term review of UNDP support project in September 2007 revealed that, although a national policy exists, there is no concrete actionable plans and strategy to ensure achievement of the set targets within the given time.? Coupled with the above, is the fact that Nigeria as a country has also launched some very important reform programmes such as the Financial System Strategy 2020 (FSS 2020) and Mr. President?s Seven Point Agenda after the launching of the policy.? The FSS 2020 specifically identifies the need to strengthening the domestic financial markets through

• developing competence and skills for financial services industry
• leveraging on the oil and gas sector to develop the non-oil sectors
• integrating the informal financial sector into the formal financial sector
• improving access to finance, and
• building an integrated? infrastructure for the financial industry

There is currently no framework for linking microfinance to FSS-2020 vision, neither is there a coherent programme to address the capacity gaps, and areas of distortion in the policy implementation. The microfinance policy would need to be appropriately, promptly and strategically integrated into these reforms.

The Government of Nigeria is in the process of designing a 5-Year Microfinance Development Strategy (MSD) which will identify and help to address all issues pertaining to the sector such as sector action plans, prioritization, and allocation of detailed roles and responsibilities, planning, budgeting, implementation and monitoring. This will ensure proper sector integration with new policy reforms, adoption of best practices, especially among microfinance institutions and microfinance banks, thereby promoting the provision of a large array of financial services to address the different needs of all segments of the population. It will complement the Nigeria Microfinance Policy, Regulatory and Supervisory Framework and ensure sector development, strength and sustainability in the long term.? It is going to be a break down of strategic actions into bits and allocating these actions among stakeholders to enable them plan, budget and implement their microfinance intervention on a medium term basis, in this case five years.

The Central Bank of Nigeria (CBN) will lead the process in developing the five-year strategic plan. A Technical Working Group (TWG) had been constituted by the Bank comprising, but not limited to the following to work along with the CBN:

• Microfinance Banks
• MIC Microfinance Bank
• Women Development MFB
• Microfinance Institutions (NGOs)
• Development and Exchange Centre (DEC)
• Community Development Foundation (CDF)
• Deposit Money Banks
• Oceanic Bank International Nigeria Plc
• First Bank of Nigeria Plc
• National Planning Commission(NPC)
• National Universities Commission (NUC)
• National Poverty Eradication Programme (NAPEP)
• West African Institute for Financial and Economic Management (WAIFEM)
• National Association of Small and Medium Enterprises (NASME)
• Nigeria Deposit Insurance Corporation (NDIC)
• Central Bank of Nigeria (CBN)
• International Fund for Agricultural Development (IFAD)
• United Nations Development Programme (UNDP)
• German Development Cooperation (GTZ)

The Group will benefit from technical support offered by the United Nations Capital Development Fund (UNDCF), UNDP and other relevant experts.

Objective of the survey

The survey is the first major step ? after the implementation of the TWG - towards designing the national microfinance development strategy document and is aimed at providing a better understanding of the state of the microfinance sector in the country at all levels including policy and regulation, financial services providers, and support infrastructure.

Specifically, the survey is expected to address the following points:

• Characteristics of the Microfinance Sector: percentage of population below the poverty line; estimated number of potential microfinance clients; estimated total market coverage; existing institutional models; products and services; key policy and regulatory instruments pertaining to the sector; government and funders interventions.
• Demand for microfinance services: breakdown by gender, rural/urban, etc.; market potential; types of financial services mostly in need (savings, loans, insurance, money transfer, etc.).
• Supply of microfinance services: different types of suppliers: formal/informal; MFBs, NGOs, MFIs; commercial banks; other types of suppliers (telecommunication companies, postal and savings institutions, development banks, insurance companies); main areas of intervention; types of services (savings, loans, money transfer, micro-insurance, etc.) and delivery modes; market penetration; current state of competition within and from outside the sector; relevance of suppliers and challenges.
• Strengths and weaknesses of suppliers: implementation of best practices; overall performance of microfinance services suppliers; governance; management information system; human resources; financial and operational sustainability; quality of loan portfolio; lending methodologies; etc.
• Policy and regulatory environment: regulatory framework; Role of the government in intermediation (retail and wholesale), promotion, regulation, etc.; Prudential regulation of financial service providers; Licensing and supervision of financial service providers; Interest rate policies; supervision capacity; prudential rules; enforcement of best practices; key constraints.
• Institutional support infrastructure: technical service providers; capacity building facilities; rating agencies, credit bureaus; domestic capital market and funding mechanisms; M-banking infrastructure; microfinance networks; strengths and challenges.
• Review of the government and funders activities: The survey will include an analysis of the current and proposed activities of the Government and relevant funders (donors and investors) to provide microfinance services. This includes: mapping current Government and funder involvement across micro, meso and macro-levels of the microfinance sector; determining existing gaps in Government and/or funder support; and exploring how the Government and/or funder community can fill these gaps, based on their comparative advantages.

Expected outcomes

The survey is expected to provide the following outcomes:

• a thorough understanding of the microfinance sector in the country: the key players, achievements so far, etc.;
• an assessment of the demand for microfinance services by all segments of the population with emphasis on women and microentrepreneurs who lack access to financial services and the constraints they face;
• an assessment of the supply of microfinance services by different types of suppliers with emphasis on the types of financial services, delivery modes, reachout, as well as their performance in terms of operational and financial viability and sustainability;
• an analysis of the appropriateness of the policy and regulatory framework in terms of assisting the development of the microfinance sector;
• an assessment of the support infrastructure and its strengths and weaknesses in providing appropriate services to the microfinance sector;
• identify the constraints and opportunities for the development of the sector.

The survey will provide recommendations on the support needed to develop the sector through investment capital capacity building, innovations, etc. which will serve as the basis for drafting the strategy document.

Deberes y responsabilidades

The survey will be conducted by a team of consultants including one International consultant and four local consultants. This team will be complemented by two senior staff from the Development Finance Department (DFD) of CBN with the support of Development Finance Officers at CBN branches nationwide, to ensure transfer of knowledge and ownership. The requirements and responsibilities of the consultants?are described below:

Responsibilities:

• Design appropriate survey methodology/and tools for collecting qualitative and quantitative data.
• Lead the team of consultants in the planning and conduct of the survey
• Coordination and supervision of the team members
• Assign specific tasks to team members
• Prepare an aide-memoire summarizing key findings and recommendations towards end of survey
• Timely preparation of draft survey report consolidating inputs of team members
• Present outcome of survey to UNDP, CBN and the Technical Working Group using Power point and other appropriate presentation tools
• Finalise survey report of not more than 50 pages and aide-memoire of 10 pages with other team members

Deliverables

Draft survey report

• Final report
• Duration

The survey shall be completed within 30 working days (five weeks including saturdays):

briefing by UNDP and CBN:     2 days
collect and review of documents available:  2 days
preparation of survey methodology and instruments:  1 day
review of methodology by CBN/TWG/UNDCF:  1 day
field work::  11 days
drafting of the aide-memoire:  2 days
draft survey report:  4 days
zonal workshops:  4 days
final survey report: 2 days

The survey team's contractual obligations are complete once UNDP has reviewed and approved the final report for quality and completeness as per the ToRs.

Competencias

• Must have experience in survey methodology of microfinance sector
• Relevant microfinance experience at the country/regional level
• Experience at the country wide sector level/understanding of building inclusive financial sectors, preferably in Africa.
• Excellent report writing and communication skills in English
• Ability to work in team and in multicultural situations

Habilidades y experiencia requeridas

• Must have at least ten years of practical international experience and up to date knowledge in the microfinance sector, preferably in Africa
• A minimum of five years of microfinance management and/or consulting experience
• Must have experience in survey methodology of microfinance sector
• Must have experience in successful donor funded microfinance interventions
• Extensive microfinance training and technical assistance experience
• Comprehensive knowledge of the industry best practices
• Relevant microfinance experience at the country/regional level
• Experience at the country wide sector level/understanding of building inclusive financial sectors, preferably in Africa.
• Excellent report writing and communication skills in English
• Ability to work in team and in multicultural situations