Funding the digital divide: Schools get COVID-19 lifeline from Nigeria’s first education microfinance bank
Nigeria is more than 50% Muslim and is part of the Organisation of Islamic Cooperation (OIC). Its economy is projected to contract by 4.3% this year due to the COVID-19 pandemic, according to the IMF’s October outlook, down from the 1.1% growth it expected in June. The pandemic has exposed many divides in Nigeria, one of which is children in rural and underserved communities being left behind as they are not equipped to adapt or transition to digital learning.
They’re getting a lifeline from Nigeria’s first specialised education bank that has teamed up with the Lagos State Employment Trust Fund (LSETF) to provide loans to over 2,000 private schools, vocational training centres, and individuals.
The 5 billion naira ($13 million) intervention fund is part of the Lagos State government’s initiative to help schools through the pandemic. Depending on capacity, schools will have the opportunity to access up to $13,000 over 30 months at a 9% interest rate per annum from EdFin Microfinance Bank.
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