The TraderMoni scheme of the Federal Government has generated a significant amount of buzz and national conversation from those who laud its impact, and those who view it as politically motivated. TraderMoni is one of 3 micro-credit products of the Government Enterprise and Empowerment Programme (GEEP).
In an interview with BusinessDay, Uzoma Nwagba, the Chief Operating Officer of GEEP, explained how GEEP was a direct response to the challenge of access to funds for micro-enterprises and financial inclusion. The scheme primarily aims to empower traders, artisans, farmers, and petty traders by providing them with the capital they need to thrive in their businesses.
GEEP was initiated in 2016 with the understanding that over 30 million Nigerians are actively involved in commercial activities but often lack access to credit. This lack of access is illustrated by the fact that in 2017, merely 0.04% of bank loans were granted to this micro-segment. With products like TraderMoni, the government is trying to bridge this financial gap and improve the livelihoods of these hardworking Nigerians.
Understanding the GEEP Initiative
GEEP is a microcredit programme that provides essential capital to individuals who are often overlooked by traditional financial institutions. It consists of three products: MarketMoni, FarmerMoni, and TraderMoni. Each product is tailored to meet the unique needs of different sectors, ensuring that every eligible trader has access to funds.
One of the remarkable aspects of GEEP is its focus on inclusivity. Many beneficiaries do not possess the required financial history, collateral, or formal identities that traditional banks demand. Despite these challenges, they are actively engaged in trading and have a significant need for capital to expand their businesses.
Through GEEP, these individuals are not only provided with loans ranging from N10,000 to N300,000 but are also introduced to the formal financial system, enabling them to open bank accounts and utilize mobile wallets. This move towards digital finance is transformative for a sector that has been historically marginalized.
Loan Accessibility and Progress
These loans are accessible to petty traders who can start with N10,000 and potentially graduate to N300,000 based on their repayment history. This structured approach not only helps individuals to get started but also encourages them to build a positive credit profile.
The disbursement of loans is carried out by agents equipped with tablet computers, allowing for a streamlined and efficient process. Over the past two years, 1.5 million loans have been disbursed across the three GEEP programs, with 1.2 million beneficiaries being part of the TraderMoni initiative.
This rapid expansion showcases the high demand for microcredit among traders, indicating that the programme is well-received and essential for many Nigerians. It is a testament to the program's success in meeting the needs of a previously underserved population.
Addressing the Vote-Buying Allegations
Despite its successes, TraderMoni has faced scrutiny regarding accusations of being a vote-buying scheme. It is essential to clarify that the GEEP program began in 2016, well before the onset of any election seasons, with the first loan registration occurring in May of that year.
By November 2017, the Bank of Industry had already disbursed over 300,000 loans, illustrating that the program was established with a focus on economic empowerment rather than political maneuvering. The question remains: is GEEP a wrong programme if it positively impacts millions of Nigerians?
Many beneficiaries are simply seeking access to credit to better their circumstances. If a small business owner sees an opportunity to gain the financing they need, it is only logical for them to take it—regardless of the political climate. This perspective challenges the notion that access to funds should be limited based on timing or political context.
The Reality of Economic Empowerment
It is crucial to recognize that individuals at the base of the economic pyramid are intelligent economic actors. They possess goals and aspirations just like anyone else and are not inherently vulnerable to manipulation. The narrative that they can be easily bought ignores their dignity and the complexities of their lives.
Additionally, notable is the fact that many beneficiaries of TraderMoni come from states that do not politically align with the ruling party. This indicates the program's reach and the government's commitment to empowering all Nigerian petty traders, regardless of political affiliations.
Assessing the Impact of TraderMoni
The impact of TraderMoni is evident in the results achieved thus far. Over half of the 1.5 million beneficiaries have become first-time operators of bank accounts or mobile wallets. This financial inclusion is a major step toward economic stability and growth for many individuals.
The Bank of Industry's commitment to reaching out to those who are financially excluded is commendable. While it may take time to fully integrate the over 30 million Nigerians currently underserved by traditional financial systems, initiatives like TraderMoni are paving the way for a more inclusive economy.
This initiative serves as a powerful reminder of the potential that exists within the micro-enterprise sector and the transformative effect of access to capital. As more individuals engage with the formal financial system, the ripple effect can lead to broader economic growth in Nigeria.
In conclusion, TraderMoni is more than just a loan scheme; it represents a movement towards financial inclusion and empowerment for millions of Nigerians. As we continue to monitor its impact, it is clear that the journey towards economic empowerment for micro-enterprises is just beginning.
Follow the link to read the full interview for deeper insights into the TraderMoni initiative and its implications for the Nigerian economy.
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Source: Legit.ng
