In many respects, Nigeria represents a paradox in development. Take for instance, Nigeria is the seventh world largest exporter of oil, yet ranks 158 out of the 188 countries of the would in terms of quality of life (UNDP, 2007). Available statistics indicate that poverty has become endemic in Nigeria and is on the increase. For instance, poverty increased from 18 million people in 1980, to 35 million people in 1985; 39 million people in 1992; 67 people in 1996; and 74 million people in 1999. At present, about two-third of the Nigeria’s population (about 150 million) are poor. The latest Human Development Programme indicates that 70.8 per cent and 92.4 per cent of Nigerian population live below US$1 (N117) and US$2 (N234) a day respectively (UNDP, 2007). All these support the ranking of Nigeria among the world’s least developed nations of the world (UNDP, 2007).
Out of these numbers of poor Nigerian, women represent greater proportion due largely to their ascribed and acquired role, which is accentuated by sociocultural orthodoxy with a concomitant vulnerability to deprivation, intimidation, and extreme suffering. Consequent upon this, majority of these women are forced into the informal economy, which exacerbate poverty and vulnerability. Given the multidimensional role of women in the Nigerian culture, and by implication in the development process though not often acknowledged, the continued neglect of the women in Nigeria means postponing economic recovery in the country.
Perhaps in realization of this truism, stakeholders in the development of the less developed economies have recognized that the poor are potential economic agent rather than the hitherto misconstrued axiom that they are economic liabilities. The Institute for Liberty and Democracy’s (ILD) study of the informal economy in the third World shows that “the poor are, infact, not so poor” (ILD, 2001:1). This realization has indeed dislodged the myth that the poor cannot and do not save, are not credit worthy, (Businessday, 2008), therefore cannot extricate themselves from poverty through active involvement in economic activity.
The heightened acceptance of the poor (the bottom-of-the-pyramid) as potential active economic agent that could change their fortune for good if given the right support (Shultz and Pecotich, 1997; Nkamnebe, 2005) informs the increasing recognition of the potency of micro financing as a tool for improving the quality of life of the poor. Micro credit is used in its broad sense as the provision of credit, savings and other financial services to micro-entrepreneurs and low-income borrowers (Haruna 2007; Robinson 2001; Ehigiamusoe 2007; Dunford, 2000).
Accordingly, through multi-party collaboration of non-governmental organizations (NGOs), government, development institutions, donor countries and agencies, and sundry agents, MFIs are increasingly being created to serve as purveyor for conveying credit to the poor for creating and supporting micro enterprises for self empowerment and as a deliberate policy pull to market inclusiveness. At present, over 7000 such institutions exist all over the world, serving more than 25 million world poor, majority of who are women. A Central Bank of Nigeria’s (CBN) study identified 160 registered MFIs in 2001, and by 2008, the number has increased to over 700; the implied supposition being that the more the MFIs the more the poor especially women have access to credit therefore are empowered and insulated against poverty and exclusion. This may be a theoretical possibility as a number of factors, implicit and explicit might be working against this supposition.
With increasing publications on the Nigeria’s micro financing and micro credit (for example see: Mohammed and Hassan, 2008; Akanji, 2008, Anyanwu, 2004; Umoh,
2006; Omorodion, 2007; Anyanwu, 1994; Bamisile, 2006 Oke, Adeyemo, and Agbonlahor, 2007) there is need to contribute to literature and public policy by examining factors militating against Nigerian women’s access to micro credit. The present study examines the constraints and barriers to uncounted by Nigerian Igbo women in accessing micro credit, and to identify innovative measures taken by them to overcome such constraints and barriers.
Understanding the barriers and constraints to credit access would inform policy adjustment and initiation, and having insight on innovative measures adopted by women to overcome such barriers and constraints would trigger consciousness in replicating such measures. The essence would be to foster market inclusiveness that would help in reducing poverty and vulnerability through enterprise development and growth. After this initial introduction, the rest of the paper is discussed under the following headings: Nigeria in context, brief review of literature, methodology, findings and discussion, and conclusion.
