[Nigeria] In Osun, New Grounds in Poverty Alleviation

from All Africa

This Day (Lagos)

Tokunbo Adedoja
Lagos

The partnership between the Osun State Government and the United Nations Development Programme (UNDP) has caught the attention of the private sector, with small scale entreprenuers as the beneficiaries

For industrialists and agro-allied experts in Osun State, it is yet another opportunity to break new grounds, with new opportunities provided by the UNDP -Osun State Sustainable Human Development Fund (OSSHDF). Apparently spurred by the need to see Osun State developed, Governor Olagunsoye Oyinlola sometime in December 2003, inaugurated the board of trustees of the UNDP-OSSHDF. The board, which is an assemblage of prominent indigenes of the state, was charged with mobilising and sourcing for fund from government, individuals and the private sector "towards meeting the objectives of the then sixth country programme of the UNDP." This include to transform the state industrially, combat poverty and improve quality of life among the people.

The board is chaired by Mr. Segun Aina, former managing director and chief executive officer of defunct Fountain Trust Bank and former President, West African Bankers Association (WABA) (Nigerian Chapter). He is also the second vice-president of the Chartered Institute of Bankers in Nigeria (CIBN).

Shortly after inauguration, the board went into action. In February, 2004, a fund-raising was held in Oshogbo. Over N250 million was realised with the state government contributing N150 million. Not long after, another fund-raising was held at the Miccom Golf Hotels, Ada, Osun State. This phase was targeted at involving the organised private sector, individuals, corporate bodies and charity organisations.

A whopping N100 million was raised in cash, cheques and pledges. Another N200 million was expected through institutional/corporate pledges through the Small and Medium Enterprises Equity Investment Scheme (SMEEIS)'s programme of banks, a report by the board stated. The focal point of the second fund raising were the organised private sector, individuals, corporate bodies, companies, charity organisations and non-governmental organisations.

To demonstrate his commitment to the cause, Oyinlola announced the donation of his salary for a year. The fund-raising train later moved out of the state. The first point of call was Lagos where some funds were raised for the project on December 16, 2004. Barely a year later, another fund-raising was held in Abuja. That was precisely on August 10, 2005. Again, the governor pledged his annual salary for the project.

So far, over N350 million has been realised. Of this amount, about N250 million is said to have been committed to various ongoing projects and programmes.

Already, the UNDP-OSSHDF is quietly providing the needed boost for entrepreneurs and industrialists in the state. One of such is the UNDP - OSSHDF micro credit/middle level micro-credit in November 2004.

Also, on the occasion of the 2004 International Day for the Eradication of Poverty in Osogbo, "N30 million in cheques were distributed to three leading micro finance institutions (MFIS) in the state.

Equally, over 400,000 people in the 30 local government areas of the state were said to have benefited from the fund disbursed through the institutions. The second phase of the scheme has since started. According to the board's chairman this phase "is targeted at individuals and companies whose businesses require funds of not more than N500,000."

As a result of the successes recorded, the board has decided to put in more money into the scheme. Another sum of N30 million to be spread to beneficiaries in every local government area is to be injected by the board for the middle level micro credit scheme.

In addition to this, the board has also disbursed N60 million to 600 cassava farmers across the state. The farmers belong to the Cassava Growers Association structured on local government basis. This arrangement made the disbursement and monitoring of the scheme effective.

Similarly, plans are said to be in top gear to include rice and fish farming projects in the UNDP- OSSHDF agricultural funding programme. The aim is to use the combination of all the programmes to "propel economic empowerment, additional employment and industrial growth within the state."

Also to give its programmes the scientific foundation and as a follow-up to the pledge by bank officials present at the launch of the development fund at Ada, that the financial institutions would support Osun State-based industries and businesses to access fund meant for SMEIS, the board is said to have commissioned the Centre for Industrial Research and Development (CIRD), Obafemi Awolowo University, Ile -Ife to organise seminars for small-scale industrialists in the state. Various topics relating to how SMEs can be developed in an accelerated manner in Osun State will be discussed.

Such issues include easy access to funding, investment opportunities and managerial skills necessary for SME's success.

A novel strategy to encourage the well-to-do and organisations in all communities to assist small-scale entrepreneurs, is the introduction of collaborative community focused micro-credit scheme where individuals and organisations within a particular community are expected to put down an amount not below N500,000 to be distributed within a given community as short-term micro-credit and later recycled to other beneficiaries within the same community.

To kick-start the project, whose fund is managed by the board's accredited Micro Finance Institutions (MFI's), some members of the board have belled the cat. For instance, the Segun Aina Foundation has announced the contribution of N1 million for beneficiaries from Otan Ayegbaju where Aina hails from.

Also, Chief Olu Falomo, another prominent member of the board has also made an announcement of N500,000 to be shared among those interested in his Ifosan community in Ilesa. The secretary of the board, Mrs. Iyabode Opeyokun, on her part, has expressed desire to make available the sum of N250,000 for use in Ijebu - Jesa.

The board, in its bid to raise N1billion for the scheme has appealed to corporate donors which have been identifying with poverty alleviation programmes such as Nigerian Breweries, MTN Foundation, V-Mobile and others for support and collaboration.