Pakistan Journal of Social Sciences

Incorporating NGOs in Microcredit Delivery: Prospect and Challenges in Delta State, Nigeria

S.O.E. Alakpa and E.A. Onemolease

Abstract: The study assessed the prospects and challenges of using NGOs as strategy for micro-credit delivery using Shell Petroleum micro-credit scheme in Delta State, Nigeria for a case study. Ten NGOs involved in the implementation of the Shell micro-credit scheme were sampled. Data from 519 participants and non-participants in the scheme were analysed using frequency counts, mean and t-test. The study revealed that there was prospects in using NGO for micro-credit delivery as the income of participants in the NGO-managed scheme ( 282,895.14) was significantly higher than that of non-participants ( 165,971.54). However, a number of challenges were associated with this strategy namely: delay in service payment charge by the sponsoring agency, i.e., SPDC (mean = 4.00), difficulty in accessing communities (mean = 3.67), poor staff commitment (3.44) and failure of beneficiary group to adhere to loan management guidelines (= 3.22). Closer monitoring of the beneficiary groups by the NGOs and enforcement of appropriate selection criteria as well as provision of adequate logistics to improve NGO’s delivery was recommended.