TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
1.2 AIMS
AND OBJECTIVES
1.3 STATEMENT
OF RESEARCH PROBLEMS:
1.4
SIGNIFICANCE OF THE STUDY
1.5
SCOPE OF THE STUDY
1.6
LIMITATION OF THE STUDY
1.7
STATEMENT OF RESEARCH HYPOTHESIS
1.8 DEFINITION
OF TERMS
CHAPTER TWO
2.0 LITERATURE
REVIEW
2.1 OVERVIEW
OF MICROFINANCE BANKS IN NIGERIA
2.2 ROLE
OF MICROFINANCE BANKS IN PROMOTING• ECONOMIC GROWTH VIS-A-VIS ENTREPRENEURSHIP
DEVELOPMENT
2.2.1 CREDIT DELIVERY
2.2.2 BOOSTING SMALL SCALE ENTERPRISES/AGRICULTURE
2.2.3 EMPLOYMENT GENERATION
2.2.4 IMPROVEMENT IN SKILL ACQUISITION
2.2.5 FACILITATES POVERTY ALLEVIATION
2.3 CHALLENGES
OF MICROFINANCE BANKING IN NIGERIA
2.3.1 COMMUNICATION GAPS AND INADEQUATE AWARENESS
2.3.2 ANTI-POOR ATTITUDES OF NIGERIANS
2.3.3 INSUFFICIENT SUPPORT FROM THE REGULATORS AND GOVERNMENTS
2.3.4 UNDUE COMPETITION RATHER THAN COOPERATION FROM THE MEGA BANKS
2.3.5 POSSIBLE MALPRACTICES BY MICROBANK OPERATORS
2.4 WAYS
FORWARD FOR EFFECTIVE AND RESULT ORIENTED MICROFINANCE BANKING IN NIGERIA
2.5 THE
ROLE OF CENTRAL BANK OF NIGERIA
IN STABILIZING MICROFINANCE BANKING:
REFERENCE
CHAPTER THREE
3.0 RESEARCH
METHODOLOGY
3.1
RESEARCH
DESIGN
3.2 DATA
COLLECTION
3.3 POPULATION
OF THE STUDY
3.4
SAMPLING DESIGN AND PROCEDURES
3.5
DATA COLLECTION INSTRUMENT
3.6 DATA
ANALYSIS TECHNIQUES
REFERENCE
CHAPTER FOUR
4.0
PRESENTATION, ANALYSIS AND INTERPRETATION
OF DATA
4.1 A
BRIEF INTRODUCTION OF THE CHAPTER
4.2
RESPONDENTS CHARACTERISTICS AND
CLASSIFICATION
4.3
PRESENTATION AND ANALYSIS OF DATA
ACCORDING TO RESEARCH QUESTIONS
4.4 TEST
OF HYPOTHESES
CHAPTER FIVE
5.0
FINDINGS, SUMMARY, RECOMMENDATIONS
AND CONCLUSION
5.1 FINDINGS
5.2
SUMMARY
5.3 CONCLUSION
5.4 RECOMMENDATION
BIBLIOGRAPHY
APPENDIX: QUESTIONNAIRE
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It would be observed that, despite
the presumed developments in the Nigerian economy, the country is still largely
being regarded as a developing country (Onyema, 2006). More so, its industrial
growth is not quite impressive.
Before the emergence of formal
microfinance institutions, informal microfinance activities flourished all over
the country. Traditionally, microfinance in Nigeria entails traditional
informal practices such as local money lending, rotating credit and savings
practices, credit from friends and relatives, government owned institutional
arrangements, poverty reduction programmes etc (Lemo, 2006). The Central Bank
of Nigeria Survey in 2001 indicated that the operations of former microfinance
institutions in Nigeria
are relatively new, as most of them never registered after 1981.
Before now, commercial banks
traditionally lend to medium and large enterprises which are judged to be
credit-worthy. They avoided doing business with the poor and their micro
enterprises because the associated cost and risks are considered to be
relatively high (Anyanwu, 2004).
The Federal and State governments
have recognized that for sustainable growth and development, the financial
empowerment of the rural areas is vital, being the repository of the predominantly
poor in society and in particular the SMEs. If this growth strategy is adopted
and the latent entrepreneurial capabilities of this large segment of the people
is sufficiently stimulated and sustained, then positive multipliers will be
felt throughout the economy. To give effect to these aspirations various
policies have been instituted over time by the Federal Government to improve
rural enterprise production capabilities. (Olaitan 2006)
In view of this, the impact of micro
finance bank in economic growth and development of Nigeria started showcasing itself.
With the initiative of microfinance, rural areas are opportune to grow and
develop as loan and fund are easily given to rural farmers and entrepreneur.
Jobs opportunities were created since there is avenue for lending and
investing.
1.2 AIMS AND OBJECTIVES
The mains objectives of this research
work are to investigate the impact of micro finance bank in economic growth and
development of Nigeria.
Other objectives are as fellows
i. it will explicate in detail ways
in which micro finance banks can contribute in developing rural areas and
improving the life of the poor people.
ii. It will investigate the ways
microfinance bank can contribute in building entrepreneurship within the
country.
1.3 STATEMENT OF RESEARCH
PROBLEMS:
There are so many problems and
challenges that hinders the functionality of the microfinance bank in carrying
out their major role of improving economic growth ad development in Nigeria.
These problems include
-
poor
attitude of Nigerians towards MFBs
-
insufficient
support from the regulators and government
-
There
are communication gaps and inadequate awareness among the masses.
-
Undue
competition rather than cooperation from the mega banks, and undue
malpractice/Sharp practices by microfinance bank operation.
The researcher will in the research
find possible ways of solving or making better the conditions for the operation
of MFBs.
1.8
SIGNIFICANCE OF THE STUDY
This study is essentially significant
in that it is directed towards evaluating the impact and role that micro
finance banks have on the economic growth and development of Nigeria,
especially the rural areas which is a criteria aimed at measuring economic
standard.
Owing to the fact that researcher has
aimed at pinpointing the ways in which micro finance bank can help in the
revamping of the nation’s economy, the findings of this research work will be
of great help to most developing countries who may wish to toe the part of
Nigeria in MFB development.
It will also serve as a reference
point for future researchers who in one way or the other will try to unveil the
role and impact of micro finance bank to economic development.
1.9
SCOPE OF THE STUDY
The scope of the study is subjected
around the frame work of microfinance bank in Nigeria vis-à-vis its contribution
to the economic growth anad development.
For accuracy and coherency, the
research work will take as a case study the Community bank Enugu to enable precision and
distinctiveness.
1.10
LIMITATION OF THE STUDY
During the course of this research, a lot of
obstacles were encountered.
Thus, the uncooperation of most
people working in the library and other offices where the researcher needed to
get materials posed great problem to the researcher. Some of the staffs do not
feel safe letting us have access to some materials while others will charge me
more than double cost of Photostat before I can get what I wanted.
Financial constraint is another
limitation to this work which is as a result of high cost of transportation
fare to the areas of study to gather data, combined with the cost of materials
to carry this work to conclusive end.
It also took great strength to
convince the respondents that their responses to the questions in the
questionnaire will be treated with great confidentiality and are purely
academic.
1.11
STATEMENT OF RESEARCH HYPOTHESIS
It is quite evidential that the major
ways in which microfinance bank can help in economic development is through the
encouragement of entrepreneurial development.
The essence of microfinance bank is
to enable the poor individual to be able
to obtain loan and be able to manage their enterprise.
To this effect, the following
hypothesis will be tested, thus.
Hypothesis I
H0: Micro finance bank is irrelevant to the economic development and
growth of Nigeria
since the number of entrepreneurs that uses their services is low
Hi: Micro finance bank is relevant to the economic development and
growth of Nigeria
since the number of entrepreneurs that uses their services is low
Hypothesis II
H0: Microfinance institution do not contribute
to entrepreneurial productivity
H1: Micro finance institutions do contribute to entrepreneurial
productivity.
1.8 DEFINITION OF TERMS
IMPACT:
According to the advanced oxford
learner’s dictionary, impact is the
powerful effect that something has
one somebody or something
MICROFINANCE BANK
According to the Nigerian Banking
Act, 1969 (as amended Bank amendment act 1979), Microfinance banks are
institutions constructed as a company licensed to carry on the business of
providing microfinance services such as collection of savings, loans provision,
insurance money transfer services and other non financial services that are
needed by the poor.
The clients of microfinance banks are
typically self employed low income entrepreneurs in both urban and rural areas,
they include traders, subsistence farmers, street vendors, motorcycle riders
and blacksmith etc.
ECONOMIC GROWTH AND DEVELOPMENT:
This term has generated a lot of
controversies over the years. Some economics see it as political and structural
change while others are of the opinion that it relates the progress in the
basic human needs over time. Another school of thought defines it as growth
accomplished by changes i.e. change in structure of the economic in the
country’s social structure and its political structure.
Others have tended to make basic
human needs approach, an approach which defined economic development in terms
of progress toward reducing the incidence of poverty, unemployment and income
inequalities and for those whose living standards have not been rising. This
approach also seeks ways and means of improving their conditions,
NIGERIA:
A nation in the African continent and
located in the western part of Africa. it was
colonized by the British and got its independent in 1960.
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