ABSTRACT
The study focuses on ‘Micro Financing in Nigeria; Problems encountered,
future prospect and their solutions. The case study area was small and medium
scale enterprises owners within Enugu North metropolis. The benefactors of the
micro- finance programme have been applicants to one micro finance bank or the
other before their request for fund were granted. The questionnaire used to
carry out this research work was well structured to enable the researcher to
get relevant information. Data collection employed was direct interview as most
individuals could neither read nor write or both. The micro-finance Bank
visited included: Umuchinemere Micro-Finance Bank and the University of Nigeria
Nsukka Micro -Finance Banks both in Enugu. During the course of my research,
analysis showed that most of the problems encountered by the applicants and the
benefactors of the micro-finance program were “Procedural in nature”.
Respondents say it is difficult to obtain. The instrument of data analysis used
are simple percentage table and figures, and Chi-Square was also used for
testing the hypothesis. Ninety four point thirty five percent (94.356) agreed
that the procedures and straight while five point sixty five percent (5.656)
agreed that the procedures are not straight. Conclusively, in order to enhance
economic growth and development within the scope of study strategies on how
repayment of loans should be made easy for applicants were analyzed extensively.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The practices of micro-finance in Nigeria
is culturally rooted and dates back to several centuries. The traditional
micro-finance institution provides access to credit for the rural area, urban
low income earners etc. They are mainly of the informed self help Group (SHG’s)
or rotating saving and Credit Associations (ROSCA’s) types. Other providers of
micro-finance services includes saving collectors and co-operates societies.
Nigeria can only achieve Robust economic
growth by putting in place well focused programmes to reduced poverty through
empowering the people by increasing their access to factors of production,
especially credit.
Micro-finance is about providing financial
services to the poor who are traditionally not served by the conventional
financial institutions. Three features distinguish micro-finance from other
formal financial products. These are:
i. The smallness of loans
advanced and or savings collected.
ii.
The absence f asset-based collateral and
iii.
Simplicity of operations.
In Nigeria, the formal financial system
provides services to about 350 of economically active population while the
remaining 656 are excluded from access to financial services. The 656 are often
served by the informed financials sector, through Non-Governmental Organization
(NGO), Micro-finance Institution Money Lenders, friends, relatives and credit
Unions.
The non-regulations of the activities of
some of these institutions have serious implications on the Central Bank of
Nigeria’s (CBN’s) ability to exercise one aspect of its mandate of promoting
monetary stability and a sound finance system.
A micro-finance policy recognize the
existing informal institutions and bring them within the supervisory preview of
the Central Bank of Nigeria would not only enhance monetary stability but also
expand the financial requirement of the micro small an medium enterprise
(MISMES).
Such a policy would create a vibrant
micro-finance sub-section that would be adequately integrated into the
mainstream of the National Financial System and provide the stimulus for growth
and development. It will also harmonize operating standards and provide a
strategic platform for the evolution of micro-finance institutions, promote
appropriate regulation, supervision and adoption of best practices. In these
circumstances, an.....
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Item Type: Postgraduate Material | Attribute: 103 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
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