Digital Artifact

1. This digital artifact presents informal sources of projects financing by informal groups in
Nigeria. Informal sources of financing projects appear to be very effective alternatives. These
sources include; Esusu/Asusu, Age grade, Men’s revolving Loan, committee of friends and
Social club and can address SDG’s 1-5 which are apt. Research have shown that 75% of the
population utilized these sources. This makes the Public or private sector would be interested
to participate. The main obstacles currently standing in the way of solving the problem is the
non-existence of a formalization of these informal sources of financing projects that form the
DRM.

2. Private sector financing using informal sources to finance projects; a local community
Perspective the Nigerian context
SDG’s 1-5
Dignity & People
Literature have shown that 75-80% of the
population utilized informal sources of funding
to finance their projects while less than 20% use
formal sources to finance their projects in
Nigeria. All these form part of Domestic
Resources Mobilisation
(DRM)
Micro-finance Bank
&
Cooperative Banks
Informal Sources
Esusu/Asusu,
Age grade,
Men’s revolve Loan,
Committee of friends
Social club
What is the problem or issue?
What are the main obstacles currently standing in the
way of solving the problem or issue?
What are the reasons why both Public & Private
sectors would want to participate?
The following are obstacles currently standing
in the way of solving the problem
 Poor institutional framework
 Paucity of data to account for the
amount generated from each of the
sources.
 Inadequate qualified man power to
generate data
 Bureaucratic bottleneck and red tape
 Lack of an enabling environment
 High level of corruption in both Public
& Private sectors and many others
The informal sources are used
by the low income and
informal groups in Nigeria.
These sources of funding are
massive but have not been
properly/adequately harness
to finance development in
many communities.
What are these sources?
How best can this 75-80% of the population
Captured as Domestic Resources Mobilisation
(DRM)