There is an estimated 2.8 billion people living in poverty. More than 300 million of the continent of Africa's 725 million people are estimated to live on less than $1 day. This makes the percentage of African's living in acute poverty more than 40%. Nearly 30,000 children die each day from poverty related causes.

How can we help? Give a loan and change a life...forever.

Muhammad Yunus has put the global spotlight on the radical theory of microfinance when he and his Bangladesh-based Grameen Bank received the Nobel Peace Prize in 2006. The basic idea of this theory is to teach the poor how to help themselves by giving them small unsecured loans, known as micro-credit.

"Loan the poor people money on terms that are suitable to them, teach them a few sound financial principals, and they will help themselves." (Yunus, Banker to the Poor: Micro-Lending and the Battle Against World Poverty)

Yunus created a method that would break the cyclical entrapment of extreme poverty. It is the basic principal of teaching a person to fish rather than giving them the fish to begin with. Due to a lack of financial structure and a complete lack of sufficient credit and access to financial resources, microfinance opportunities, such as Home Makers, are allowing the people within these impoverished countries to gain a foothold above the economic base.

How does it work?

Typically these tiny loans are given in increments anywhere between $50-150 to specific individuals or in groups of 3-5 people. Often times, the group loans are more successful when complications of repayment, dishonesty, and crisis come along. Interest rates for these loans are rather high, ranging anywhere between 20-35 percent. In Nigeria, the interest rates reported in local banks and money lenders can reach up to 35-40 percent.

This presents a problem for individuals trapped in poverty. Not only do individuals in extreme poverty not have the credit needed to get a loan from local banks, but they would not be able to afford the payments with such high interest rates. Banks in these third world countries are not able to cater to the credit needs of the poor which has lead to the success of microfinance initiatives. Mohammad Yunus, as well as several largely successful microfinance institutions, have reported that more than 98% of their loans are repaid.

There has been a great focus on loans given to women. This emphasis has come due to several studies showing the efficiency and timeliness of payback on such loans from women. These studies also showed these women using their earnings to benefit their family's needs (food, clothing, education, etc.). "When money enters into the household through a woman she is able to then bring more benefits to the family as a whole" (Yunus, 72).

Nigeria - Brief Country Profile

According to the United Nations, Nigeria has been undergoing explosive population growth and one of the highest growth and fertility rates in the world. They are the ninth most populous country in the world, and one out of every four Africans are Nigerian. In comparison to other African nations, Nigeria's HIV/AIDs rate is much lower. However, it is still a large problem.

Nigeria's Delta region, home of the large oil industry, experiences serious oil spills and other environmental problems. Nigeria is the 12th largest producer of petroleum in the world and the 8th largest exporter, and has the 10th largest proven reserves. It was also a founding member of OPEC. However, years of military rule, corruption, and mismanagement have hobbled economic activity and output in Nigeria and continue to do so, despite the restoration of democracy and subsequent economic reform.

Nigeria's new president, Umaru Yar'Adua, won the recent elections in April 2007 which were condemned by local and foreign observers, who alleged widespread vote-rigging. In his bid for the presidency, he has promised to fight corruption.