Womens Economic Rights> MR. GODWIN EHIGIAMUSOE'S PAPER

[jjowa@xxxxxxxxxxx]

MICRO CREDIT AS A TOOL FOR POVERTY ALLEVIATION OF 
NIGERIAN WOMEN - OUR EXPERIENCE

 The condition of women remain critical especially in 
the area of poverty  and exclusion from participation 
in the public sphere. This was part of  the concern in 
the 1995 Beijing conference. The conference called for 
the  integration of gender perspectives in all policies 
and programmes and  identified concrete measures to 
address women's concerns world wide. The  major areas 
of concern include:
>
>     a.. the increasing burden of poverty 
>     b.. limited access to education 
>     c.. violence against women 
>     d.. Women in conflict situations 
>     e.. limited participation in decision making 
>     f.. Persistent discrimination and violation of 
women?s and  girl?s rights
> There are many variables that have been used globally 
to arrive at the  position women occupy in our society. 
They are:
>
>     a.. Participation in political decision-making 
>     b.. Access to professional opportunities 
>     c.. Earning power 
>     d.. Health status 
>     e.. Access to social amenities
> Women with limited access in all the areas named, 
perform multiple roles:  mother, producer, home 
manager, community organiser, social and cultural  
leader. These demands, coupled with the limited 
opportunities available to them in our  society have 
further impoverished them.

> LAPO and Poverty Alleviation

> An improvement in the condition of women has remained 
paramount in  LAPO?s focus. LAPO is a poverty focused 
development, membership  organization, with the broad 
aim of assisting its members (poor women)  improve 
their well being. LAPO?s activities are directed by 
the  following operating assumptions:
>
>     1.. poor women are disadvantaged to benefit      
from services of formal financial  institutions 
>     2.. the poor are not necessarily lazy 
>     3.. the socio-economic situation of the poor 
would  improve if credit is added to support their 
physical labour and skills 
>     4.. poverty is reinforced by factors as too large 
a family size,  malnutrition, ignorance, diseases and 
social injustice 
>     5.. small groups have tremendous influence on 
cooperating  individuals 
>     6.. poor women and children are relatively more 
neglected

> Two additional declarations are also necessary:
>
> Firstly, LAPO?s focus on the poor especially poor 
women is not  negotiable. We believe that the world has 
the enormous resources and  technological capabilities 
to eradicate the worst manifestations of  poverty, if 
the will is there.
>
> Secondly, LAPO conceives of poverty as a monster with 
many faces. Gone  are the days when simplistic 
interpretations and explanations of poverty  gave 
prominence to factors ranging from laziness to destiny. 
People  especially women are poor, because they are 
largely illiterate, do not  participate in the decision 
making process of the country and in the  allocation of 
resources, lack of access to assets, and limited access 
to  health and other welfare services. Poverty to us at 
LAPO is material  deprivation, loss of self esteem, 
powerlessness and  poor health.  The success of a 
unilineal attack on poverty is therefore doubtful.
>
> LAPO is known for microfinancial services delivery. 
However the  institution actually delivers a package of 
services coded SHEEP ?  Social Health and Economic 
Empowerment Programme.
>
> SHEEP has the following components:
>
> Economic empowerment
>
> LAPO operates a credit and savings scheme which 
targets poor women.  Intending beneficiaries are 
expected to organize themselves into groups  (self 
selected). Members of a group of 5 members guarantee 
one another.  No collateral is required. Unlike the 
banks that deal with faceless  clients, loan 
beneficiaries in LAPO are known as members. This is 
because they are involved in decision making through 
the basic phases of  loan cycle and in the institution.

 The microcredit scheme has therefore provided avenue 
for women to have  access to an array of responsive 
financial products for their  microenterprises. Loan 
products include regular loan for working capital 
requirements, Christmas Business loan, Asset loan, and 
joint project  loan. Savings products include regular 
savings and Christmas Business  Savings. As they have 
access to these products, women are able to  enhance 
their income earning capacity and build up assets, 
which  eventually propel them to break out of the 
vicious cycle of poverty to  the virtuous cycle of 
prosperity.
 100 ? 250% increase in level of women?s income within 
12 months of  access to LAPO?s loans were reported in 
an independent evaluation of  LAPO services in 1997.

 Besides credit and savings opportunities, LAPO has 
introduced a micro  insurance scheme for women to 
reduce their vulnerability. The pilot  project which 
covers 4000 women is being implemented in conjunction 
with  American International Insurance Company Plc. It 
is envisaged that the  creative risk management 
arrangement will be extended to all members and  to 
cover additional risks.

 Economic empowerment and risk management is central to 
playing a  dominant role in decision making in the 
family.

 When women have their own resources, they are able to 
make decisions about the utilization of such resources 
without having to seek approval  from the male 
household head. With adequate resources, women no 
longer  suffer or watch their children die or suffer 
from conditions that can be  helped with little money 
especially in times of ill health.

 Social development:

> LAPO realised since inception that poverty goes 
beyond the possession of  financial resources. Certain 
factors beyond money have been identified  as major 
causes of poverty or reinforcement where it already 
exist. Such  factors include ill health, ignorance and 
exclusion from decision making  opportunities. Beyond 
provision of access to financial resources to  engage 
in income generating activities, LAPO has realised the 
need to equip our members with tools to enable them 
challenge and break down  structures that sustain 
poverty. Without doing this, it would be a  situation 
of helping them cope today without facing the 
challenges of  life tomorrow.

 Women whether urban or rural do have political 
interests to pursue.  They are confronted with power 
relations which constrain the  opportunities open to 
them in both private (family) and public spheres.  
Women?s age-long demands for their ability to meet 
basic needs like  food, shelter, education, health 
care, for themselves and members of  their family, have 
direct political implication. The process of resource 
distribution and allocation in society can only be 
influenced by a  politically active population. This 
prompted the creation of LAPO  Development Centre in 
1996 with the primary responsibility for the  promotion 
of social development for maximum impact of the 
economic  empowerment programme.

 The strategy in this area consists of creative 
sensitization packages:

 a.. GELT (Gender Environment and Leadership Training)
 
This is a  two-day-participatory training programme. 
With essential codes as drama,  story telling, songs 
and sharing, poor women are sensitized on the role  of 
cultural norms and practices in the process of poverty. 
They are also  encouraged to challenge and indeed seek 
to destroy such gender hostile  practices.
LAPO women called the GELT package an eye opener.

 b.. Development Education and Leadership Training

 This is a four-week-training programme segmented into 
four phases. It is  designed to sensitize LAPO women on 
issues such as:

     a.. self esteem 
     b.. group dynamics 
     c.. process of poverty 
     d.. social injustice and inequity 
     e.. political participation and power relations 
     f.. household power relations
 As at June 30, 2001, 210 women have completed the four 
phases of the  programme.

 Our current Television programme "Bridging The Gap" is 
also aimed at  social and political sensitization.

 c. Health 

 Health awareness activities have been a part of LAPO 
since inception in the late 1980?s. Key strategies are:

     a.. Community Health discussion sessions 
     b.. Publication and distribution of graphic 
dominated Health  Awareness journals 
     c.. Radio Health Talk "15 minutes with LAPO" 
(rested for evaluation) 
     d.. Production and distribution of posters 
     e.. Training of Rural Health Sensitization Agents
 LAPO?s focus is on rural women.

 LAPO has been structured to effectively deliver these 
services.

 Within the LAPO System are semi-antonomous units which 
implement the  various components

     a.. LAPO Fund delivers financial services through 
14 branches and a Community Bank in Edo State, 9 in 
Delta State, 4 in Kogi State and 1 in the Federal 
Capital Territory, Abuja.
     b.. LADEC (LAPO Development Centre) is the Think 
Tank of the LAPO  SYSTEM and it implements social 
development programme in addition to  conducting 
surveys and researches. 
     c.. LAPO Health implements Health Awareness 
programmes. 
     d.. Micro Investment Unit support enterprising 
women and groups to  set up microenterprises.

 The success of LAPO?s poverty alleviation strategy 
could be attributed  to the following features and 
values
     1.. Insistence on  poor women. Eligibility 
criteria are set and  vigorously applied 
     2.. We de-emphasize elements of charity 
     3.. Involvement of beneficiaries from the 
community based groups in the Governing Board. 
Intensive interaction between beneficiaries and  
programme staff 
     4.. Emphasis on programme monitoring 
     5.. Responsive products and services 
     6.. Commitment of programme staff 
     7.. Support from donor agencies
Thank you very much.
GODWIN EHIGIAMUSOE
EXECUTIVE DIRECTOR,
LAPO

 References


 1. Aganmwonyi F et al: Report of The Evaluation of 
Lift Above Poverty Organization (1988 ? 1997) 1997

 2. Awolowo Dosumu et al: Community Development Finance 
in Nigeria: Lessons, opportunities and challenges 
Lagos. Obafemi  Awolowo Foundation  1997

 3. Ehigiamusoe G. "Women, Credit and Empowerment": a  
paper presented at 2nd LAPO Development Forum, 1995

 4. Ehigiamusoe G. Poverty and Microfinance in Nigeria 
LAPO Development Centre Benin City, 2000

 5. Summers L. M. Investing in All the People World 
Bank, Washington DC 1982

 6. World Bank Towards a Gender Strategy for Nigeria: 
Integrating Women?s issues into Development Agenda.