THE ROLE OF MICROFINANCE BANKS IN THE ALLEVIATION OF POVERTY IN NIGERIA.

( A Case Study of Oha Microfinance Bank Ogui Road Branch, Enugu State)

Click here to download our android mobile app to your phone for more materials and others

COMPLETE PROJECT MATERIAL COST 3000 NAIRA

ORDER NOW

MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:

GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER: 0115939447

First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631

We also accept : ATM transfer , online money transfer

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>

Call Help Desk Line : 08074466939,08063386834.

After Payment Send Your Payment Details To

08074466939 Or 08063386834, The Project Title You Selected On Our Website , Amount Paid, Depositor Name, Your Email Address, Payment Date. You Will Receive Your Material In Less Than 1 Hour Once We Confirm Your Payment.

WE HAVE SECURITY IN OUR BUSINESS.

MONEY BACK GUARANTEE

You may also need: web design company in Nigeria

Bulk sms company in Nigeria

ABSTRACT

This study explores the immense role of the microfinance banks in the alleviation of poverty in Nigeria. The researcher revealed that the rate at which rural dwellers deposit their money in their pillows rather than in microfinance banks is high. Data were collected through primary and secondary sources. As regarded to primary sources, questionnaires and interviewed were used. The chi-square (x²) method was used for testing of hypotheses. Responses to the questionnaires were analyzed using percentage method of analysis. Based on the findings of this study, an attempt on the role of microfinancing as stimulus to poverty alleviation in Nigeria may lack adequate knowledge of various financial transactions available and how the rural dwellers can access them. In conclusion, it hoped that the recommendation will help the microfinance banks to strengthen its weakness for better and effective services in order to achieve its sets of goals and socio-economic advancement for the alleviation of poverty in Nigeria.

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION

1.1 Background of the study————————————————————–1

1.2 Statement of problems—————————————————————-4

1.3 Objectives of the study—————————————————————-6

1.4 Research Hypothesis——————————————————————6

1.5 Research questions——————————————————————–7

1.6 Significance of the study————————————————————–7

1.7 Scope of the study———————————————————————8

1.8 Limitations of the study————————————————————–8

CHAPTER TWO: LITERATURE REVIEW

2.1 Overview of microfinance activities in Nigeria———————————–10

2.2 Justification for the establishment of microfinance institutions————-16

2.3 Microfinance policies and goals—————————————————19

Contributions of government in alleviation of

poverty through establishment of microfinance banks———————–23

The rate at which rural dwellers are not able to repay

their loans—————————————————————————26

2.6 Supervision of microfinance banks—— —————————————-28

2.7 Roles and responsibilities of stakeholders————————————–30

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design———————————————————————33

3.2 Sources of data collection———————————————————–33

3.3 Methods of data collection———————————————————34

3.3.1 Primary data————————————————————————-34

3.3.2 Secondary data———————————————————————-35

3.4 Determination of population size————————————————-35

3.5 Determination of sample size—————————————————–35

3.6 Sample procedures—————————————————————36

3.7 Method of data analysis———————————————————-37

3.8 Decision rule———————————————————————–38

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data presentation—————————————————————–39

4.2 Summary of responses———————————————————–39

4.3 Test of hypothesis—————————————————————–48

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

5.1 Summary of Findings————————————————————–55

5.2 Conclusion————————————————————————–56

5.3 Recommendations—————————————————————–56

BIBILOGRAPHY——————————————————————-58

APPENDIX A———————————————————————–60

APPENDIX B—————————————————————————61

APPENDIX C—————————————————————————63

CHAPTER ONE

INTRODUCTION

1.1: BACKGROND OF THE STUDY

A robust economic growth cannot be achieved without putting in place well focused programme to reduce poverty through empowering the people by increasing their access to factors of production.

The latent capacity of the poor for entrepreneurship would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self-reliant, increase employment opportunities, enhance household income and create wealth. Micro-financing has existed for years before the introduction of conventional banking in Nigeria and the later part of nineteenth century. (Ekot, 2008)

The traditional Nigerian society has a system of group savings and assistance to one another. The practice was that a group of people who had needs for some form of capital or lump sum to execute a particular project which they could not raise adequate savings on their own, usually come together to form a savings group. The group may be named after the leader who is usually the initiator of the venture. The traditional microfinance institutions provide

access to credit for the rural and urban low-income earners. These are mainly the informal self-help groups such as Isusu,women association like one obtainable during popular August meetings,

Umu–ada progressive women association. Other providers of microfinance services include savings collectors and co-operatives.

(CBN brief, 2005)

The unwillingness and inability of the formal financial institutions is to provide financial services to the urban and rural poor, coupled with unsustainability of government sponsored development financial schemes, contributed to the increase in number of private sector led micro finance in Nigeria. Thus, before the emergence of microfinance institutions, informal microfinance activities flourished all over the country. The Central Bank of

Nigeria (CBN) as at end of December 2009 gave an approval to 840 microfinance banks to begin operation in the country. (CBN briefs, 2008-2009)

Microfinance banking is about providing financial services to the economically active poor and low income household, who are traditionally not served by the conventional financial institutions.

These services include credit savings, micro-leasing, micro-insurance and payment transfers to enable them engage in income generating activities. (Asemota, 2002)

However, the microfinance policy launched on 15^th December 2005 defined the framework for the delivery of these financial services on a sustainable basis to the micro, small and medium enterprises (MSMES) through privately owned microfinance banks.

The Non-governmental Organizations or Microfinance institutions

(NGO-MFIS) are also expected to transform to microfinance banks. (Dinye, 2006)

Existing Community banks and NGO-MFIS that want to convert and transform respectively to a microfinance bank but do not have the required minimum capital base can increase the share capital by capital injection, merger and acquisition. These would not only enhance monetary stability but also expand the financial infrastructural development of the country to meet the national financial system and provide stimulus for growth and development

(Benson, 1985). It would also harmonize operating standards and provide a strategic platform for the evolution of microfinance institution, promote appropriate regulation, supervision and adoption of best practices. The establishment of microfinance banks has become imperative to serve the following purposes:

Improve, diversified and create a dependable financial service to the active poor, low-income earners in a timely and competitive manner that would enable them to undertake and develop long-

term, sustainable entrepreneurial activities, mobilize savings for intermediation, create employment opportunities and increase the productivity of active poor and income earners in the country. Thus increasing their individual household income and capacity standard of living, enhance organized and systematic but focused participation of the poor in the social-economic development and resource allocation process. It will also provide veritable avenues for the administration of the micro credit programme of government and high net worth individual on non-resource basis. This policy ensures that state government shall delegate an amount of not less than 10% of their annual budgets for on-lending activities of microfinance banks in favour of their residents and render payment services such as salaries, pension for various tiers of government (Luck,2011).

1.2: STATEMENT OF PROBLEM

Nigeria consists of different classes of individuals, who are either enterprising or industrial low class that account for over half of the population who do not have access to formal banking services. Savings have continued to grow at a very low rate particularly in the rural areas of Nigeria. One of the problems brought to bear is the inability of rural dwellers to channel their savings into banks. Most rural people keep their resources under their pillows. This

method of keeping savings is risky because it might be stolen, lost

For more topics click

This article highlights various college of education, polytechnics, universities website in Nigeria.

Adeyemi College of Education, Ondo,

Alvan Ikoku College of Education, Owerri,

Federal College of Educ. Abeokuta,

Federal College of Education, Eha-Amufu,

Federal College of Education, Kano,

Federal College of Education, Katsina,

Federal college of Education, Kontagora,

Federal College of Education, Obudu,

Federal College of Education, Okene,