Dignitaries and stakeholders at the first National Savings Group Conference have called a national financial sector policies that support, enable, and facilitate the activities of informal finance among the poor.
The former Special Advisor to the President on Social Investments, and Founder Isa Wali Empowerment Initiative (IWEI), Maryam Uwais who made the call in Abuja, said the policies must aim to enhance the developmental impact of informal finance.
“Efforts should, however, be mindful of experiences from the past, where financial sector liberalization disrupted informal financial systems without improving access to formal finance for the poor.”
“With women empowerment initiatives, in particular, the social context must be carefully managed (through training and engagement) in a more comprehensive manner, for progress and meaningful growth to occur.
According to Uwais, “There are social norms that inform the entire scenario, that should be strategically factored into the financial literacy training, for both men and women.
While highlighting the challenges faced by Savings Groups in Nigeria, Maryam Uwais said it includes the concentration of banking and financial institutions in urban areas.
According to her,” It limits access to financial services for rural and semi-urban populations, adversely affecting savings groups.”
”These groups aim to access loans and other services unavailable locally, potentially raising service standards in target areas.
”However, distance from banking infrastructure reduces feasibility, many groups near the poverty line opt to save with nearby banks due to transportation costs and risks associated with forming group accounts,” she said.
Focusing on other challenges, she said Cultural and Gender Barriers, whereby the decision-making process in Africa is heavily weighted against women.
” Women have little say about how money should be spent or saved, in agriculture, women provide most of the labour, but they own only 1% of the land and get only 7% of the credit going to small-holder farmers,” she noted.
”Due to these inequalities, Nigeria remains one of the most difficult environments for establishing financial services targeted at low-income women.
”While microfinance institutions and banks are increasingly effective in reaching the poor, their limited availability and the recent financial crisis have hindered access for many,” she added.
The Country Director of CARE Nigeria, Dr Hussaini Abdu, said the conference aims to review the Current State of Savings Groups in Nigeria, through a comprehensive assessment.
He noted that the gathering also seeks to gain deeper insights into the existing landscape of savings groups, identifying strengths, challenges, and opportunities for growth and sustainability.
”Advocating for Policy and Regulatory Reforms, recognizing the crucial nexus between policy frameworks and savings groups’ success, we endeavour to champion policy and regulatory reforms and advocate for government initiatives that foster an enabling environment for savings groups in Nigeria.”
”Sharing Best Practices and Success Stories: Learning from one another is paramount to progress, hence, we look forward to a rich exchange of best practices, practical models, success stories, and experiences from diverse savings groups across Africa.”
Dr Abdu said the conference would also Provide a Networking Platform, fostering dialogue and partnerships among savings groups, financial institutions, and relevant stakeholders.
”Saving money and having financial inclusion are potent tools that can help advance women’s economic empowerment, promote social justice, and reduce poverty,” he added.
In a message, Nigeria’s Vice President, Senator Kashim Shetima pledged effective collaboration with relevant stakeholders to address lapses causing multidimensional poverty in the country.
He said the present administration has various reforms on the present economic profile of the country and plans to review others to meet international best practices.
Represented by the Technical Adviser to the President on Financial Inclusion Nurudeen Abubakar-Zauro, the Vice President said arrangements have been concluded to interact with local and international stakeholders on how best to gain from their wealth of experiences for Nigeria to be at par with the global community.
The theme of the conference is Accelerating Financial and Economic Inclusion: The Pivotal Roles of Savings Groups in Nigeria
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