...Impact of Microfinance Institution on Nigeria Economy Ghana Christian University College SDM 201222101014 Introduction to Microfinance Mr. Sam Quinn Word Count: 2241 Dec. 2, 2014 Table of Content Pg Introduction 3 Definition of Terms 3 Concept of Microfinance 3 The Goals of Microfinance Institutions 5 Impact of Microfinance on the Economy of Nigeria 6 Negative Impact of MFIs on the country (Nigeria) 10 Conclusion Introduction Since the advent of microfinance institution in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them. The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance institution scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. The introduction of microfinance institutions in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the...
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...IMICRO-FINANCE OF MOBILE ENTREPRENEURSHIP IN NIGERIA: AN ANALYSIS OF SELECTED CASE STUDIES IN BENIN CITY BY DADA ADEYINKA PSC0709051 DEPARTMENT OF POLITICAL SCIENCE AND PUBLIC ADMINISTRATION FACULTY OF management SCIENCES UNIVERSITY OF BENIN BENIN CITY. DECEMBER, 2015. MICRO-FINANCE OF MOBILE ENTREPRENEURSHIP IN NIGERIA: AN ANALYSIS OF SELECTED CASE STUDIES IN BENIN CITY BY GLORY PSC0709051 IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE BACHELOR OF SCIENCE (B.SC) DEGREE IN POLITICAL SCIENCE AND PUBLIC ADMINISTRATION, FACULTY OF MANAGEMENT SCIENCE OF THE UNIVERSITY OF BENIN DECEMBER, 2015. CERTIFICATION This is to certify that the exercise here by described in the research work was carried out behind the Faculty of Physical Science, University of Benin, under my supervisor. ____________________ ____________________ Dr. B.E. Iyorzor Date Project Supervisor ____________________ ____________________ Dr. E.O Aiyohuyin Date Head of Department DEDICATION I dedicate this project to Almighty God who has always giving me the grace and privilege financially and otherwise to do this project and to my lovely family, who gave me moral courage in the cost of writing this project. ACKNOWLEDGEMENT This completion of this work would not have been possible if not for the support which I received from many people. My thanks...
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...Sector: A Case Study of Nigeria Ishola Rufus Akintoye Senior Lecturer, (OOU) Room 116, Department of Economics Faculty of the Social Sciences, University of Ibadan Ibadan, Nigeria – West Africa Abstract This paper seeks to establish that unemployment as one of the macroeconomic problems could be reduced through the informal sector participation provided it is well supported and manged. The informal sector in itself may not be able to achieve much as we have presently due to inaccessibility to credit, but with the on-going policy of the Federal Government through the Central Bank of Nigeria on micro-financing the macroeconomic objective of reduced unemployment, if not full employment will become a reality in Nigeria. The microfinance policy has empowered the many microfinance institutions to provide credit to the informal sector. We therefore advise that the Nigerian Government and all relevant stakeholders continue in their quest towards reducing unemployment while they give their undivided support, in making sure that the informal sector continues to enjoy access to credit to finance its activities and accomplish its goal of unemployment reduction. Introduction Unemployment is one of the developmental problems that face every developing economy in the 21st century. International statistics portray that industrial and service workers living in developing regions account for about two-thirds of the unemployed. (Patterson et al, 2006). The Nigerian economy since the attainment...
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...as the springboard for sustainable development. In all emerging economies like Nigeria, the government has shown a great concern for the development of small and meduim scale enterprise because of the underlying socio economic factors plaguing the nation. some of the reasons include: the past policies failed to generate efficient self sustaining impetus needed to uplift the country to the ‘take-off’ stage of growth, the increased emphasis on self-reliant approach to the development and the recognition that dynamic and growing petty-business can contribute substantially to a wide range of developmental objectives. However, the full potential of the micro business in the development process have not been realized owing to numerous bottlenecks. In the light of this, the Central Bank of Nigeria (CBN) as part of its reform agenda, initiated Micro Finance Banks, a policy initiative aimed at bringing credit to the door step of the poor who do not have such access under the conventional financial system. The thrust of this project is to articulate the prospects of the micro finance banks towards boosting the performance thereby reducing the level of poverty and enhancing employment generation. Micro finance banking institution were conceived and came into been in December 2007. It was packaged to address the issue of cultivating appropriate modern banking habits in the rural area, through the social local institution such as community social clubs and other individuals who are encouraged...
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...Community Banks to Microfinance Banks will enhance the assessment of women entrepreneurs to financial resources”. Discuss Evaluate the impact of SEEDS in the implementation of MDGs in Nigeria Analyze the impact of Globalization on the economic Development of Nigeria The incidence of the Niger Delta militants groups and its consequences to entrepreneurial development in Nigeria Evaluate the power, composition and functions of NDDC Assess the impact of the multinationals in the Nigerian Economy with regard to FDI and FPI Youths and entrepreneurial Development: Realty or Myth Evaluate the implementation of MDGs and the realization of the objectives by 2015. The effect of entrepreneurial development on poverty reduction The impact of privatization on Nigerian economic development and growth. Evaluate the impact of different reforms in the Nigerian reforms on the Nigeria economy. Women entrepreneurial development (WED) and poverty: what a paradox The impact of women entrepreneurs in SMEs on poverty alleviation Evaluate the cultural factors in Nigeria and entrepreneurial development. Evaluate the financial factors in Nigeria and entrepreneurial development. Evaluate the environmental factors in Nigeria and entrepreneurial development. Gender, entrepreneurship and globalization: Barriers and prospects. Intrapreneurship and achievement of organizational objectives Evaluate intrapreneurship as a motivational concept in an organization Assess the impact of entrepreneurship...
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...AN ASSESSMENT OF THE BANKING HABITS OF NIGERIAN RURAL POPULACE: A CASE STUDY OF KUDAN LOCAL GOVERNMENT AREA OF KADUNA STATE. By MALACHY, GIMBA SOLOMON (U08BA1132) A Project Submitted to the Department of Business Administration, Faculty of Administration, Ahmadu Bello University, Zaria, in Partial Fulfilment of the Requirement for the Award of Bachelor of Science (B.Sc.) Degree in Business Administration (Banking and Finance). September, 2012. DECLARATION I earnestly declare that this study has been carried out by me, that it is a record of my own research and other review of related literature. It has not been presented in any previous application for any degree. The various sources of information are duly acknowledged in the references. __________________________ _______________ MALACHY, GIMBA SOLOMON DATE CERTIFICATION This project entitled “An Assessment of the Banking Habits of Nigerian rural Populace: a case study of Kudan Local Government Area of Kaduna State”, written by Malachy, Gimba Solomon, has been read and approved by the relevant authorities as meeting the regulations governing the award of Bachelor of Science degree in Business Administration, Ahmadu Bello University, Zaria and for its contribution to knowledge and literary presentation. ___________________________ _______________ Mallam Dalhatu Bashir Iman Date (Project Supervisor) ___________________________ _______________ Mallam Aminu Gumi Date (Project...
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...CHAPTER ONE INTRODUCTION 1.1 INTRODUCTION Economist always say that human beings behavior are rational that is, they are classified and directed at some specific point, devoid of unnecessary emotions and sentiments. In the same line of thought when a group of persons decided to join or form a co-operative society, they do so with some rationale behind their intention and or action (Sanusi, 2003). Economics reasons constitute the major motive why people join or form co-operative. It is an attempt to improve one’s income by carrying out more economic activities or improving on the performance of the present enterprise of the individual. By so doing, the member’s economic position is increased. A tailor who joins a tailors’ co-operatives society has among other reasons the economic motive(Bog-Igwe, 2007). Co-operative action takes place when individuals pool their resources together which are often meager in an effort to obtain what is needed by all but can not be obtained by the use of an individual’s resources, talents, time, information or effort. This habit has existed since the origin of humanity, that is, since the time that human beings started living together on the basis of family unit and or in a community. Co-operation is customary and instinctive solidarity. The first co-operative act of man was when the first human family started gathering food even before agriculture was invented (Mbat, 2000). The more advanced forms of traditional co-operation is demonstrated...
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...DEVELOPMENT OF MICROFINANCE IN THE GHANAIAN ECONOMY NAME: BELINDA AKU ATEPOR INDEX NUMBER: 10224399 SUPERVISOR: DR. CHARLES ANDOH TABLE OF CONTENT Background of the Study ………………………………………….......................................3 Problem Statement ……………………………………………….........................................4 Objectives of the Study ……………………………………………………………………..5 Research Problems ………………………………………………………………………….5 Significance of the Study …………………………………………………………………...5 Literature Review …………………………………………………………………………..6 Methodology …………………………………………………………………………………. Scope and Limitations ……………………………………………………………………...7 Chapter Outline …………………………………………………………………………….8 References…... DEFINITION What Is Microfinance? Microfinance, according to Otero (1999, p.8) is “the provision of financial services to low-income poor and very poor self-employed people”. These financial services according to Ledgerwood (1999) generally include savings and credit but can also include other financial services such as insurance and payment services. Schreiner and Colombet (2001, p.339) define microfinance as “the attempt to improve access to small deposits and small loans for poor households neglected by banks.” Therefore, microfinance involves the provision of financial services such as savings, loans and insurance to poor people living in both urban and rural settings who are unable to obtain such services from the formal financial sector. Microfinance encompasses...
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...External Remote Environment Analysis The banking sector in Nigeria is can be analyzed using the General Forces Matrix to analyze trends or events that give a pointer into the future of companies operating in the industry. In terms of economics, there has been a persistently high inflation rate in Nigeria. Although the Central Bank has tried to keep the rate stable in the last three years, the absolute rate is still relatively high. The impact of this is that there are not enough small and medium scale businesses to employ the teeming population of unemployed people. Demographically, the population of Nigeria is growing at an alarming rate and this is estimated to get to 170million by 2016. This growth is as a result of illiteracy and the influence of culture in this part of the world. The banking industry is highly regulated and as such, banks are vulnerable to the changing policies and guidelines from the regulator, the Central Bank of Nigeria. Some of these laws include guidelines for capital adequacy, obligor limits, prudential guidelines for banking operations and other operational modalities. Sometimes, the regulators can introduce changes due to trends or events happening in the global landscape. As a result, banks invest substantial time and resources towards understanding these trends and forecasting to reduce the impact of sudden shocks. The barrier to entry in the banking sector is high. In Nigeria, there is a huge capital requirement of between 300 to 500 million...
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...Assessing the Effectiveness of Microfinance Loans from NBC in Reduction of Poverty in Kinondoni District – Dar es Salaam. LIST OF ABBREVIATIONS. ACB - Akiba Commercial Bank CGAP - Consultative Group to Assist the poor CRDB - Cooperative and Development Bank FFI - Formal Financial Institution FINCA - Foundation for International Community Assiatance GDP - Gross Domestic Product NBC - National Bank of Commerce NGO - Non Governmental Organisation NMB - National Microfinance Bank NMFP - National Microfinance policy PFSs - Private Financial Sectors PRIDE - Promotion of Rural Initiatives and Development Enterprise SACCOS - Saving and Credit Cooperative Society SPSS - Statistical Package for Social Science URT - United Republic of Tanzania ABSTRACT The Ojective of the research was to assess the eeffectiveness/contribution of PFSs in reduction of poverty in Kinondoni District Dar es Salaam Tanzania. The research was conducted at NBC branches. The Branches to which the Reseacrh was conducted were Kinondoni Branch, Ubungo Branch, Mlimani City Branch, UDSM Branch and Tegeta Branche. Data were collected through interview and research questionnaires and were analyzed by using quantitative approach. The research study revealed that Tanzania...
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...problem. Access to credit should enable a business to achieve their growth objective. Despite this it is interesting to note that most of the SMEs could not survive third year of incubation period. Descriptive Survey method was employed in this study. The study adopted stratified and systematic random sampling method. The sample size was 157 SMEs. Semi-structured questionnaire was designed to facilitate the acquisition of data. Data was collected from 102 respondents, a response rate of sixty five percent. Sales, income and competitiveness were used as the independent variable while growth of SMEs as dependant variable. Descriptive statistics was used to analyze data. Results indicated that microfinance has positive effects on growth of SMEs. Majority of the owners indicated that microfinance has enabled them to expand businesses, build their business assets. Also ability of the business to complete was enhanced. Abstract: Majority of small and micro enterprises in Kenya are mostly out of scope of formal banking services. They depend on MFIs Keywords: Small and micro...
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...Assignment 2: Lending Institutions, Health Care, and Human Capital Monique Ashley Val Margarit, MA, Ed. S, ABD Sociology 300 December 3, 2013 Abstract This paper is about Nigeria and their health care, lending institutions and human capital. It is how this country can grow because this country is capable of great things. They need help and It seems that they are trying to fix the problems in their country, but it s very hard to climb yourself out of a hole that seems impossible. They need a assistance but the World Bank and IMF see unable to provide the amount of care that they need or give them the financial push that is required to keep their country a float. Lending Institutions, Health Care, and Human Capital Nigeria is a fail state that democracy has been tried in but they failed to miserably because they are so many corrupt officials. (Ditimi & Nowsa, 2011) Now Nigeria is so far in debt it will never be able to climb its way out. (Ditimi & Nowsa, 2011) The need of human capital is apparent because things can’t continue the way they are going and people surviving. (Ditimi & Nowsa 2011) “Not having sustainable development it what is keeping them a third world country and a fail state. (Dauda, 2011) In this regard, policy-makers in conjunction with employers and individuals need up to date information on the real labour market value of different qualifications, in order to help them navigate through the increasingly complex education system...
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...EFFECT OF ROTATING SAVINGS AND CREDIT ASSOCIATIONS ON ECONOMIC WELLBEING OF RURAL WOMEN IN ANAMBRA STATE Abstract This study examines the effect of rotating savings and credit associations on economic wellbeing of rural women, particularly in Anambra State, Nigeria using an econometric multiple regression model of the Odinary Least Square (OLS). Findings revealed that credit/ loan services, training and advice on investment services and capital formation (savings) services through rotating savings and credit associations significantly influence the economic wellbeing of the rural women in Anambra state, Nigeria. Based on the findings, the study recommends that rotating savings and credit associations should be encouraged among rural women because...
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...million was defaulted. The risk has consistently decreased from 7.9 per cent in 2009 to 6.3 per cent in 2010. With the increase in interest rates and inflation rate, non-performing advances were expected to go higher, but it is not the case. This shows that the risk in the Kenyan market is low Interest rates spiked in December 2011 after the Central bank increased its key lending rate to a high of 18 per cent to curb the inflation rate which had peaked at 19.72 per cent in November that year. Though both the Central Bank Rate and inflation rate have dropped to 9.5 per cent and 4.11 per cent, banks are still lending at an average of 17.84 per cent. Microfinance institutions in Kenya have suffered significant loan repayment default resulting into subsequently decreased employment levels and cash flow problems in microfinance institutions this can partly be attributed to the high interest rates of government borrowing. Commercial banks hold about 53.7 per cent of total bills and bonds so banks are left with just about Sh250 billion to lend to private sector keeping demand for loans higher than the supply. Based on this, the Government should...
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...Until about four years ago, precisely January 2012, Nigeria was essentially a cash based economy. Then, the banks had to contend with high volume of transactions, which resulted in long queues at banking halls. The queues alone made banking difficult, to the extent that many Nigerians decided to remain unbanked. However, with the introduction of cashless policy, which signaled the adoption of electronic banking, through Automated Teller Machine (ATM), Point of sale (POS) and others, the Central Bank of Nigeria (CBN) intended to bring banking hall and banking services close to the people, even in the comfort of their homes. With the cashless policy, there were expectations of improved security, as it was intended to discourage movement of cash, and reduce traffic at the banking halls. The policy has however not met these expectations, as queues refused to disappear. Some customers complained that the policy has limited their cash transactions, no matter the type of electronic transaction they use. But competition in Nigerian banking sector has become intense, partly due to regulatory imperatives of universal banking and also due to customers’ awareness of their rights. Bank customers have become increasingly demanding; they require high quality, low priced, immediate service delivery and improved value from their chosen banks. And in the face of all these complaints, some continue to shy away from all forms of electronic banking, like ATM, that are devoid of queue. Findings show...
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