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Women Entrepreneurship and Development: The Gendering of Microfinance in Nigeria
Presented at the 8th International Interdisciplinary
Congress on Women,
21-26 July, 2002, Makerere University, Kampala-Uganda.
By
Ngozi G. Iheduru (Mrs.)
Head, Department of Accountancy
Abia State University
Uturu, Nigeria
Introduction
This study is an attempt to investigate the ways in which
microfinance programmes, both governmental and non-governmental, have driven
financial sustainability and integrated community development among women in
Nigeria. In the process the study examined the extent to which programmes have
resulted in women's economic, social, and political empowerment. Women are
generally considered to be at the lowest rung of the poverty ladder in Nigeria,
the study extrapolated the effects of microfinance on the mitigation of
poverty. Finally, the study examined the policy implications of microcredit
financing of women economic activities within the broad framework of gender
stereotypical milieu of these enterprises. In order to accomplish accomplish
these goals, I explored the theoretical bases of microfinance analysis with the
overarching context of gender/feminist literature. This approach is important
because of the low economic status of women in Nigerian society. As I proceed
to argue here that there is a general likelihood that the microfinance approach
is targeted at women, I also explain the underlying rationale for this approach
from the Nigerian perspective. To realize this and test our propositions, I
selected three microfinance, one non- organization and two government assisted
microfinance organizations: Country Women Association of Nigeria (COWAN), the
Peoples Bank of Nigeria, and Family Economic Assistance Programme. The latter
two are both federally operated institutions of the government of Nigeria aimed
at providing credit to those who ordinarily would not get them and by so doing
raise their economic status and help to eliminate poverty. The propositions
that are made in this study are (1) there a direct relationship between
microcredit availability and economic development; (2) there is a direct
relationship between microcrdit and women empowerment in Nigeria; (3) the
availability of microcredit facilitates income generating activities among
people and contributes to their increased standard of living; (4) that there is
an association between microfinancial institutions and the development of
financial sustainability among Nigerian women; and (5) that microfinancial
institutions are directly associated with women leadership development in
Nigeria.
Nigeria's Electricity crisis
Nigeria, Africa's most populous country with over 140 million people has less than 40% of her population connected to the electricity grid with no electricity supply for more than 60% of the time. Nigeria has no enough electricity generated to meet the demand of her people.
The current administration of President Umaru Musa Yar Adua has put Power and Energy has number one in his seven-point agenda for the development of the nation. He is also currently aiming for 6000 MW electricity generation by December, 2009, but the current generation is at about 3000 MW. Ongoing extensive repair and upgrading is being done on the Shiroro power plants in Niger state and supply of gas to Egbin thermal station is being resumed after disruptions caused by the Niger Delta militants attack on oil and gas infrastructure. The bulk of the electricity crisis has been the structural deficiencies of our power stations and distribution system. The grid is actually powered by hydropower and thermal (which makes use of fossil fuel) power. Within each of these sources, there are structural problems that subtract from the overall efficiency of the energy producing capacity of each type of power station. Also, technological deficiencies are prevalent throughout the power system, both in the generation and transmission. For example, with modern technology, about 40% of the energy consumed in thermal plants can be converted to electricity, but in the absence of this technology (as is currently the case in Nigeria) this figure can be as low as 12%. Of that power produced, there is further loss through transmission. One estimate claims that between 30 and 35% of power generated in Nigerian power stations are lost in transmission. By comparison, power losses across line in the United States usually come to less than 1%, even across greater distances. Illegal users' tapping of the power lines also contribute to inefficiencies in the power system as they remain unaccounted for and even regarded as power loss. Underinvestment in modern technology, lack of modern standardized components and qualified maintenance staff have made the power problem in Nigeria intractable.
Crude Oil Crisis in Nigeria
Nigeria is the 12th largest producer of crude in the world and the 8th largest exporter, and has the 10th largest proven reserves. Nigeria – Butmen Corporation (a German company) was the first company to explore crude oil in Nigeria as far back as 1908 when traces of it was found at Araromi in the present Ondo state. This pioneering exploration was brief due to the World War 1 (1914 – 1918). But, in 1937 Shell started exploratory activities after been awarded the sole concession rights that covered the whole territory of Nigeria. The company operated under the Mineral Oil ordinance of No. 17 of 1914 and its amendments of 1925 and 1950 which stipulated that only companies registered in Britain or any of its protectorate with their principal officers being British, can explore oil in Nigeria.
Shell intensified its geographical surveys in the late 1940s till 1950s and then discovered its first commercial crude oil in 1956 at Oloibiri in the present Bayelsa State. On 1958, Shell started oil exportation from Oloibiri field at a rate of 5,100 barrels per day (bpd). In other to break shell's monopoly on oil exploration its concession right was reviewed and exploration rights were granted to other companies like Mobil, ELF, Agip, Gulf and Tenneco. By the time of Independence in 1960, oil production had been established and export was over 170,000 bpd.
All these oil production is from a small fragment of the nation amounting to about 7.5% of Nigeria's land mass and known as the Niger Delta. The Niger Delta consists of the present day Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers state with a population of about 31 million people (less than 20% of the nation's population).
1. Abia 2. Akwa Ibom 3. Bayelsa 4.Cross River 5. Delta 6. Edo 7. Imo 8. Ondo and 9. Rivers
Nigeria is currently the biggest oil producer in Africa with about two million bpd, all generated from the Niger Delta. Though oil exports account for more than 80% of our total export earnings, 85% percernt of this oil wealth is retained by a few comprising 1% of the national population. The pattern of the oil revenue allocation has been a major cause of agitation by the Niger Deltans who claim that the returns of their resource is used to develop the North. They claim that their lands are being snatched from them forcefully without compensation and their source of livelihood (fishing) is been destroyed by recurrent oil spillage. There has been about 7000 oil spills between 1970 and 2000, more than one each day. Also, more than 90% of the natural gas extracted in the oil wells are flared causing more environmental damage.
In a bid to protect their rights and seek justice, many groups both militant and non-militant has emerged in the Niger Delta with most active ones being the militant ones especially Movement for the Emancipation of the Niger Delta (MEND) and Niger Delta People's Volunteer Force (NDPVF). The militant groups are demanding for creation of additional states, amenities and jobs, contracts and oil concessions for faction leaders. And since 2005 they have been destroying oil production infrastructure of different oil companies, kidnapping oil workers for ransom and causing oil production shutdowns of up to 800,000 bpd, threatening the government's plan to increase production to four million bpd by 2010. Only some of those production losses have been offset by recent offshore developments.
Also on several occasion, the Nigerian government has deployed armed forces with heavy equipment to crush the militants, but they only seem to succeed in leveling communities. In 1995 it hung environmentalist and famous writer, Ken Saro-Wiwa and eight others from Ogoni for challenging the exploration of oil by Shell on Ogoni soil. In December 1998, the government massacred youths in Yenegoa, the capital of Bayelsa state, for demanding the control of the oil resources exploited on their ancestral lands. A few months later, it also sent troops to flatten Kaiama, a town in Bayelsa state where youths had weeks before made a declaration demanding the people's control of their oil resources. In November1999, the town of Odi, Bayelsa state in Niger Delta was burnt down by soldiers on the orders of the then President, Olusegun Obasanjo. Several hundred people, including women and children were killed in the streets as they tried to escape from their burning houses. Restive youths, protesting the neglect of the community after four decades of oil exploration in the area had murdered twelve policemen sent to restore order in the town the previous week. Obasanjo, rather than send special forces, dispatched troops commanded by an army colonel, who with a full complement of artillery, bombarded Odi, murdered hundreds, and subsequently torched down the town.
The damage crude oil has done in the Niger Delta is enormous, while the local indeginous people there have seen little if any improvement in their standard of living and still suffer the damage to their natural environment and source of livelihood. Nigeria, who at one time was the world's largest exporter of groundnuts, cocoa, and palm oil, and a significant producer of coconuts, citrus fruits, maize, pearl millet, cassava, yams and sugar cane has been experiencing a decline in agricultural exports since the exportation of crude oil.
That Nigeria is blessed with abundant natural resources and yet her people remain poor is regarded as resource curse. Looking at all these, one can easily conclude in his heart that maybe Nigeria would have been well off without crude oil.
References
International Crisis Group. "Fuelling the Niger Delta Crisis". http://www.crisisgroup.org/home/index.cfm?id=4394 Retrieved October, 2009.
Wikipedia. "Nigeria". http://en.wikipedia.org/wiki/Nigeria Retrieved June, 2009
Wikipedia. "Niger Delta". http://en.wikipedia.org/wiki/Niger_Delta Retrieved October, 2009
Ransome-Kuti, Beko: "The Niger Delta crisis and Nigeria's future" http://www.humanrights.de/doc-en/countries/nigeria/background/niger_delta_crisis.html Retrieved October, 2009
Centre for Democracy and Development(CDD). "The lingering crisis in Nigeria's Niger Delta and suggestions for a peaceful resolution" http://cdd.org.uk/resources/workingpapers/niger__delta_eng.htm. Retrieved October, 2009
Nigeria today
The most urgent issue in Nigeria currently is the issue of democracy, understood not only as an end to military rule but also as the establishment of responsive and responsible political institutions which promote a government that is accountable, prevent corruption, respect human and civil rights, and ensure popular sovereignty.
For most Nigerians however, the pressing problems of everyday survival remain the highest immediate priority. Since the oil boom of the 1970s, Nigeria's economy has been in crisis despite continued expansion in oil production. The SAP has not helped the Nigerian economy much and the political instability since the early 1990s has severely impeded the ability of successive governments to implement economic policies. Without the establishment of an accountable government, the chances of addressing other pressing problems-like the deterioration of living conditions and the collapse of once outstanding educational institutions-are very minimal.
Nigeria is also well endowed with abundant human as well as natural resources to address its problems. Many of its outstanding leaders have been kept in prison or in exile. The solution for addressing its problems and thus consolidate democratic governance in the federal republic lies in having a government that works on the principles of good governance and is most especially, accountable to the Nigerian people. Good governance in Nigeria is thus essential to its stability and growth and that of the economies of West African countries in the Sub-region.
culled from http://www.iss.co.za/Af/profiles/Nigeria/Politics.html
Introduction to Nigeria
The name Nigeria comes from the river Niger which is one of Nigeria's main river. Nigeria got her independence on 1 October, 1960 from Britain, after about half a century under British colonial rule.
Nigeria is the largest country in West Africa, spanning over an area of 923,768 sq km and is bounded by Benin (773 km) to the west, Cameroon (1,690 km) to the east, Chad (87 km) to the northeast, Niger (1,497 km) to the north and the Gulf of Guinea on the south. The natural resources in Nigeria are petroleum, natural gas, tin, columbite, iron ore, coal, limestone, niobium, lead, zinc and arable land. And the only major natural disasters are periodic droughts and flooding.
Nigeria is by far the most populated country in Africa with over 140 million people (July 2008 est.) and a labour force of over 51 million people. The official currency is Naira (NGN) and kobo (k). Her official language is English, but with about 400 native languages including Hausa, Yoruba, Igbo, Fulfulde, Kanuri, Ibibio, Tiv, Efik, Edo, Nupe, Ijesa, Ijaw and Ondo.
Nigeria operates a federal form of government with 36 states and the Federal Capital Territory also known as FCT. The president, 109 senators, 360 members of House of Representatives and the 36 governors all have a four-year term but can be re-elected for another term though the president and the governors cannot serve beyond two terms. Though the national capital is Abuja, most economic activities and businesses are in Lagos.