The micro-credit scheme is aimed at assisting those in NLNG’s host communities, who cannot raise funds to start business. It is meant to provide start-up credit facilities for this category whose propensity to save is low. This scheme has a distinct advantage of creating jobs in the informal sector with its multiplier effects. It also promotes banking habits, since it focuses on mobilising savings and linking it to credit. The scheme also produces strong, credible and accountable leaderships at the village level, as members are chosen on trust, based on known history and proven integrity.

To manage this programme, NLNG contracted the Community Development Foundation (CDF) and a bank to operate the scheme. CDF is a mentoring organisation with the objective of formalizing the traditional village-level banking culture in a manner that is transparent, accountable and verifiable. The bank warehouses, disburses and manages the funds.

In the just concluded first phase of the Micro Credit Scheme, over N110million was disbursed to 248 groups, out of which N67 million representing 78% of due loans have been recovered. In the second phase, it is planned to scale up the level of financial and non financial support through partnership with and linkage of the participants to other micro finance service providers.