In Nigeria, operations of Micro Finance Institutions (MFIs) have grown considerably in the last ten years, driven largely by expanding informal sector activities and the reluctance of banks to fund the emerging micro enterprises. The number of MFI branches increased fivefold and their asset base and clients rose six and sixty-seven times, respectively. The value of outstanding loans and savings also increased. Yet the number of beneficiaries of MFI operators is an insignificant proportion of those in need of microfinance services. The financial services provided by the MFIs have neither been given publicity nor captured explicitly in the official financial statistics.

One study addressed the challenges of MFIs (Anyanwu, 2004), which included the need to approve and implement a policy framework that would regulate and standardize their operations, accessing medium to long term sustainable commercial sources of fund, increased mobilization of savings and moving a good proportion of credit portfolio to the promotion of real sector activities, especially in agriculture and manufacturing.

Two recent pilot studies in Nigeria have shown that micro credit is effective in lifting rural households out of poverty and should be considered to be scaled up (Jegede et al, 2011, Oluwatayo, 2010). However, there was no impact assessed on nutrition.