• Areas of Intervention

    Areas of Intervention

Financial Sector Reform NigeriaFinancial System Development Supports to improve the regulatory environment for microfinance and the performance of selected microfinance banks, assess possibilities to support financial institutions to increase their MSME lending activities, facilitate the introduction of microinsurance products, as well as activities to foster financial literacy and consumer protection in the financial sector.

The Financial Sector (FS) Reform Component supports a broad range of public and private stakeholders in their efforts to improve the access to appropriate financial services (credit, savings, money transfers, and insurance) for the so far underserved parts of the population. The focus of these efforts is to improve the regulatory, supervisory and policy environment in the financial sector as well as capacity building for selected stakeholders on federal, state and local level.

At the federal level, SEDIN supports the Federal Government`s Financial Systems Strategy (FSS 2020) which aims at building strong and sustainable financial institutions by strengthening regulation and supervision as well as at deepening and improving the functionality of financial markets. The collaboration with the Central Bank of Nigeria (CBN) is central to SEDIN’s objective to further strengthen the microfinance sector.  In addition, SEDIN supports the Microfinance Certification Programme.

As another important partner, SEDIN cooperates with the National Insurance Commission (NAICOM), regulator of the insurance sector, in strengthening their efforts to formulate conducive supervisory and regulatory policies for the sector.

In the insurance sector, a private sector partner of importance is the National Insurers Association of Nigeria (NIA). Jointly with this umbrella institution, SEDIN assesses the needs and demand of private insurance companies to diversify their product range to specifically serve the small entrepreneurs and their employees with appropriate insurance products.

Financial Sector Reform NigeriaFrom the private sector, SEDIN supports the federal secretariat of the National Association of Microfinance Banks (NAMB) as well as its state chapters in our partner states to become a reputable and reliable representative and service provider for their member institutions. Additionally, SEDIN collaborates with various service providers to facilitate the development of a capacity building environment able to cater to training needs of micro finance banking sector.

On the local level, SEDIN works directly with selected Microfinance Banks in the three partner states to improve their governance and managerial, financial as well as technical capacity, and enable them to better fulfil their social mandate, such as reaching out to the unbanked target population and providing adequate, sustainable and responsible financial services to the local communities and micro-entrepreneurs.

Financial Sector Reform NigeriaSEDIN acknowledges the importance of a systematic but field-based development approach; due to this, SEDIN aims to match and align interventions on different levels by sharing our experiences from the field and through this, contribute to the development of a conducive Microfinance Policy and Regulatory Framework.

To increase public awareness of financial services SEDIN, in cooperation with the CBN, will initiate a dialogue process to bring all relevant stakeholders together to discuss the next steps towards an aligned national strategy for financial literacy.

Finally, in order to make sure that synergy effects are used and the coordination and cooperation with other donor agencies in Nigeria is fostered, GIZ seconded one expert to the World Bank in Nigeria and two experts to EFInA (Enhancing Financial Innovation & Access), financed by UKaid/DfID.