Microfinance Program Nigeria II

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The Nigeria II (MINGA II) microfinance program aims to improve access to adequate financial services, particularly for low-income households and micro, small and medium-sized enterprises (MSMEs), by promoting qualified microfinance banks (MFBs). To this end, an MFB (Fortis MFB) selected according to criteria of financial and social sustainability will initially be refinanced with a subordinated loan. MINGA II is a further development of MINGA I, which was launched in 2010, and is intended to provide financing in the form of FC subordinated loans. This is intended to help the partner institutions use the funds for further growth of the loan portfolio and thus better customer reach. Since MSMEs' income is almost always in local currency, it is important for the MFBs that they also have access to refinancing in local currency with a sufficient term. At the same time, the subordinated loan enables MFB to strengthen its equity base and provide more people in the target group with financial services and savings opportunities to finance operating resources for their small and micro-enterprises, (energy-efficient) investments or housing. The project is designed as a program and can be expanded. Initially, a FZ subordinated loan of EUR 5 million is planned to be provided to Fortis MFB. With funds from a stock check (EUR 20 million), the financing to Fortis can be increased and/or up to three additional MFBs can be refinanced with subordinated loans.