ROLE OF MICRO FINANCE
BANKS IN THE ECONOMY DEVELOPMENT OF NIGERIA
TABLE OF CONTENT
Title Page
Declaration – – – – – – – – – –
Approval page – – – – – – – – –
Dedication – – – – – – – – – – –
Acknowledgement – – – – – – – – –
Table of Content – – – – – – – – –
CHAPTER
ONE
1.0
Introduction – – – – – – – – –
1.1
Background of the study – – – – – – –
1.2
Statement of the Problem – – – – – – –
1.3
Objective of the study – – – – – – –
1.4
Significance of the study – – – – – – –
1.5
Scope and limitation of the study – – – – –
1.6
Definition of term – – – – – – –
CHAPTER
TWO
2.0
Review of Literature – – – – – – –
2.1
Definition of Micro finance – – – – – –
2.2
Role of micro finance bank in Nigeria economy – – –
2.3
Beneficiaries from micro finance bank – – – –
2.4
Problem encountered by micro finance bank in Nigeria economy
2.5
Procedure for established micro finance bank – – –
CHAPTER
THREE
3.0
Summary, Conclusion and Recommendation – –
3.1
Summary – – – – – – – –
3.2
Conclusion – – – – – – – –
3.3
Recommendation – – – – – – –
Bibliography – – – – – – –
3.4
CHAPTER ONE
1.0
INTRODUCTION
OF THE STUDY
1.1 BACKGROUND
Micro finance Bank (describe here as small scale financial
services to claim that they are economically active various urban and rural
areas) has been proven to be effective in fighting poverty by providing entrepreneurs
with the necessary capital to start and expand their entrepreneurial
activities.
Last year, successive government has put in place various
policies in order to make things easier for the ordinary man on the street.
Unfortunately, the struggle for survival has became more difficult and
excruciating for the toiling masses. Indeed, the government’s concern for the
intolerable poverty level, which is more than 54 percent – over 70 million out
of 140 million Nigerian population, is encapsulated also in the recent
statement by Prof. Chukwuma Soludo, while lamenting that the poverty level in
Nigeria is not only getting to a crisis point but also becoming dynastic.
1.2
STATEMENT
OF THE PROBLEM
The research is means to widen the researcher knowledge about
the topic in question and to serve a benefit to the people who wish to know
about Micro finance bank in Nigeria. And also to serve as a basic of knowledge
to other students who wish to carryout research on the same topic.
In Nigeria Micro finance Bank instructively, the researchers
by statistics, (from the National Bureau of Statistics (NBS) in 2004) say that
the 65 percent of Nigerians are served by the informal financial sector made by
money leaders, friends, relatives and credit unions. There seriousness of the
state government to the cause of poor in their meds would be gauged by their
willingness to remit one percent of their annual budget to the micro – credit
development fund, which return, qualities then to withdraw from the pool to
empower their people. It is importance here to look at those factors
responsible for the higher poverty incidence in the country, especially in
northern Nigeria that in 2004 single member household had 12.6 percent poverty
incidence, 2 – 4 members household 39.9 percent poverty incidence, 5 – 9
household 57.9 percent, 10 – 20 member households 73 percent and above 20
member household often have 90.7 percent poverty incidence.
In the areas of education, the NBS disclosed that households
headed by those without education, agriculture and forestry had 67 percent
poverty incidence while those who live in rural areas contributed 65 percent to
poverty in 2004.
1.3
THE
OBJECTIVE OF THE STUDY
The aims and objectives of the study is to investigate into
the roles played by Micro finance banks, which actually can not be
overemphasized in the development of Nigerian economy especially in the areas
of poverty alleviation, which is an identified of moving our economy forward.
Micro finance bank carries out various functions, one, that
is granting or provide financial services such as credit, savings, micro
insurance, micro leasing and the basic aims of study are to examine the
experience of payment services to the poor and low income clients. Economic
activities in which the poor and low income clients engage in include farming
micro and small enterprise where goods are produced, catering, trading,
commerce and housing improvement services.
1.4
SIGNIFICANCE
OF THE STUDY
The study is based on identifying, analyzing and reporting
advises to Micro finance bank on how to apply their economic plant in terms of
agriculture development and mobilization of savings at the local level has been
an importance element for the community development around the world for a
longtime. This depends on the role of the Micro finance bank which helps to
exploit natural resources and poverty alleviation quantities, qualities of
capital. It is a well known fact that the basic function of Micro finance bank
is to eradicate poverty among the poor it also benefits on food security and
child rent’s education. This research work is to intensively look in to the
role of Micro finance bank developing the economy, or not? If they do, do they
plan their role in developing the economy? While it is a known fact that no
researches work that is exhaustive, it is hoped that at the end of this work,
it would be proved that Micro finance bank plays a vital role in the
development of our economy (Nigeria).
1.5
SCOPE
AND LIMITATION OF THE STUDY
Due to this topic, our area of concentration will be mainly
based on the role of Micro finance bank in the development of Nigeria economy.
In a research work of this nature, there are bond to be
factors that act on the contrary. There militating against one’s effort.
Time, which no matter how abundant it is limited, this is one
of the factors. The time allowed for research work of this nature is quite
short, even though it gives room for supervisor’s day to day consultation.
However, the research work was carried out within Kaduna and
some part of Nigeria; therefore, it was administered to a sample of population.
This study should be interpreted with caution in the light of fact that a
sample can hardly be same as population. The hesitant nature was also a
limiting factors in carrying out this research work. The conclusion therefore
are based on the readily information provided, but the limitation however does
not render research work useless but allows it to used as a basis for decision
making and as a basis for further research work.
1.6.
DEFINITION
OF TERMS
v
INTEREST
RATE: – Thisis a
percentage that expresses the relations between the interest for a particular
period and the principal of a given loan.
v
BENEFICIARY:
– The last in the series of individual or group who gain from a particular
activities.
v
DISBURSEMENT:
– This is the act of giving or paying out of funds.
v
POVERTY:
– This is a situation or experience of being poor.
v
LOAN:
– Leveling a sum of money by a lender to a borrower to be
repaid with certain amount of interest.
v
SCHEME:
– To device a plan specifically having certain motives in mind.
v
SECURITY:
– This is what is put down as a guarantee by a borrower for the
payment of loan.
TAX CLEARANCE: – This is a written testimony of having paid a
compulsory contribution levied on persons, individual, and business Inland
Revenue Development