ABSTRACT
This study examines
microfinance and the way to empower the citizenry. The study reveals that,
there has been a remarkable increase and improvement in the services of
microfinance bank throughout the federation as several community banks are now
gaining approach to operate as a microfinance banks. It was also discovered
that microfinance banking services has enhance living standards, economic
development, empowering more citizens especially the mainstream which is a
global problem.
The researcher therefore
recommends among others that, the three tiers of government (federal, state and
local government) should devote at least one percent of their annual budget to
micro credit initiatives administered through (MFBs) and promote sound microfinance
practice by advocating professionalism, transparency and good governance in
microfinance institutions.
TABLE OF CONTENTS
CHAPTER ONE:
Introduction
1.1 Background
to Study
1.2 Statement
of the Problem
1.3 Objective
of Study
1.4 Research
Hypothesis
1.5 Significance
of Study
1.6 Scope
of the
Study
1.7 Limitation
of the Study
CHAPTER TWO: LITERATURE REVIEW
2.1
Conceptual Issues
2.2
Origin of Microfinance
2.3
Microfinance History in Nigeria
2.4 Microfinance/Traditional
Banking System:
Comparative Analysis
2.5 Emerging of Microfinance
Regulatory Policy in Nigeria
2.6 The Role of Central Bank in
Enhancing Operational
Success
2.7
Effects of Poverty on Nigerians
2.8
Amelioration Effects of this Approach
CHAPTER THREE: RESEARCH
METHODOLOGY
3.1
Introduction
3.2
Analytical Methods
3.3
Hypothesis Testing
CHAPTER FOUR
4.1 Comparative Analysis of
Success Emerging Option
of Micro Finance Services In Nigeria
4.2
Consolidation Effects
4.3
Emergence of Microfinance Bank
4.4
Other African Countries
4.5
Features of Success in the Nigeria Mainstream
4.6
Microfinance Bank as at
Today
CHAPTER FIVE: SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1
Summary
5.2
Conclusion
5.3
Recommendation
Bibliography
CHAPTER ONE
1.0 BACKGROUND
TO STUDY
Microfinance is the
provision of financial services to the very active poor or mainly members of
the main stream sector of the economy. Apart from small loan it includes
savings micro insurance and other financial innovation micro credit which is an
integral part of micro finance provides access for the “active poor” to borrow,
save, invest and insure family against risk. The economic status may not have
ordinarily qualified them to access traditional credit provisions (CBN, 2005).
Micro credit is an
innovation of the United Nations Organization a declared in 2005. While our
erstwhile President Chief Olusegun Obasanjo on Thursday 15th December
2005 inaugurated the National Empowerment Development Strategy both at the
federal, state and the local government levels (National Orientation Agency,
2005).
This and other facts on
its successes in Asia (Bangladesh Prof Yunus) has successfully enable extremely
impoverished people especially women to engage in self employment projects that
allows them to generate an income and in many cases began to build wealth and
exit poverty.
The topic is so chosen
as a way of adding to word of knowledge the required recipe to kick starting
the small and medium scale enterprise (mainstream sector) of our economy as
such enhance economic development. Enhanced individual economic empowerment
self sufficiency, lifting above poverty and of course community development.
The failure of community
banks, both structurally and operationally could be traceable to weak corporate
governance, inadequate internal control, poor deposit mobilization,
unacceptable risk management practice, tax credit administration and lack of
seriousness attached to its formation. This is why community banks did not
record an improved performance in the years of its existence.
Consequently, a micro
finance policy which recognizes the existing informal institutions and brings
them within the supervisory preview of the Central Bank of Nigeria (CBN) was
launched on 15th December 2005. The policy is expected to
compliment the emerging banking sector reforms, to build strong pillars for the
financial sector and significant outreach in services provision to the
un-served segment of the Nigerian economy especially the poor, low income
earners, small and medium scale enterprises etc. It is meant to enhance
monetary stability and expand financial infrastructure of the country to meet
the financial requirement of the lower segment of the market.
1.1 STATEMENT
OF THE PROBLEM
The research is
necessitated due to the fact that development economically has to be spread
through all the sectors of the economy. Micro finance in its real sense is
provision of financial services (savings loans etc) to micro enterprise, micro
entrepreneurs for meeting business need, life cycle needs or taking advantages
of opportunities for investment and savings for business or personal
development old age reserve wealth creation, flexible structures of delivery on
a sustainable basis. Recognizing the peculiar features and challenges of the
active poor and micro entrepreneurs who are unable to provide collaterals;
i. Rather
the syndrome of the rich getting richer and the poor getting poorer.
ii. The
problem of people living below poverty line especially women (women economic empowerment)
iii. The
unavailability of young graduates and the economically active persons to have
access to funds for business or to establish a trade.
iv. Inability
of previous administration to kick start the economy by enabling the small and
medium scale enterprise.
v. The
hazard of money lenders and local thrift collectors running away with funds and
heavy interest rates charged.
vi. The
use of Ekiosa Market in Benin City is a sample area of study and to measure the
trickily down effect of micro finance banks on their respective businesses.
1.2 OBJECTIVE
OF STUDY
The specific objective
of this study is to establish the fact that micro finance option if carefully
perused will:
i. Make
financial services accessible to a large segment of the potentially productive
Nigerian population which other wise would have little or no access to
financial service.
ii. To
promise synergy and mainstreaming of the informal sub-sector into the national
financial system.
iii. To
ginger enhanced service delivery by microfinance institutions to micro, small
and medium entrepreneurs.
iv. Contribute
to rural transformation (agricultural loans).
v. Promote
linkage programmes between universal development, specialize institutions and
microfinance banks.
vi. And
finally rate the extent of the tricking down effect on microfinance banks of
the business of customers in Benin City (Ekiosa Market as a case study).
1.3 RESEARCH
HYPOTHESIS
Hi:
Microfinance banking services will be able to kick start the economy and
empower the citizenry enabling the small and medium enterprise.
Ho:
Microfinance banking services will not be able to kick start the economy and
empower the citizenry enabling the small and medium enterprise.
1.4 SIGNIFICANCE
OF STUDY
This research work is
intended to contribute to the researcher’s knowledge in the research
methodology and economics as well as increase the writers understanding of the
microfinance business and its associated problems coupled with its benefits if
properly instituted and monitored.
Furthermore, it is hoped
that the project work will provide more informed knowledge on microfinance
operations for would be investors and client
As Nigeria progresses to
increase its share of micro-credit as a percentage of total credit to the
economy from 0.9 percent in 2005 to at least 20 percent in 2020, and it share
of microfinance as a percentage of GDP from 0.2 percent 2005 to at least 5
percent in 2020. Also to cover majority of the economically active population
by 2020 thereby creating millions of jobs and reducing poverty to its bearest
minimum.
To this fact, a fore
knowledge of the problems that may likely stall or slow down the pace of its
development effects and likely measures for solutions cannot be
over-emphasized.
1.5 SCOPE
OF THE STUDY
The treatment of the
emerging regulatory supervisory of micro-finance banking since its inception
will be mainly centered around the period of 2005 – 2009 since this period was
when tangible and reliable attempts to institutionalize micro-finance banking was
most recorded and also the aftermath of this period under study.
Department | Banking and Finance |
Project ID Code | BFN0293 |
Chapters | 5 Chapters |
No of Pages | 73 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2348039638328 |
Contact Us On | +2347026816414 |
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