ISSN: 2226-3624
Open access
The need to develop the rural areas in developing countries where there have been decades of neglect are on the increase. It is against this background that this paper examined the impact of micro finance contribution to Nigeria’s gross domestic product. Time series data for 12-years period 1999-2010 were collated from Central Bank of Nigeria published annual reports. The least squares (LS) regression was used to analyze the data. The result revealed that microfinance activities have negative and non-significant contribution to gross domestic product in Nigeria. The paper recommends that rural poverty is often a product of poor infrastructural facilities; therefore government should make a conscious effort towards industrializing the rural areas thereby motivating the micro finance institutions to locate their offices and extend credit facilities to rural areas thereby improving rural economic growth.
Anyanwu, C. M. (2004). Microfinance Institutions in Nigeria: Policy, Practice and Potentials Paper Presented at the G24 Workshop: Constraints to Growth in Sub Saharan Africa, Pretoria, South Africa.
CBN (Central Bank of Nigeria) (2005). Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, Central Bank of Nigeria, Abuja Nigeria
De Aghion, B. A. and Morduch, J. (2005). The Economics of Microfinance, Cambridge, MA, the MIT Press
Eboh, E. C. (1996). Explaining the Stability of Informal Group System of Financial Intermediation in Rural Nigeria: An Empirical Analysis. Journal of Rural Cooperation, XXIII (2), 105 – 11
Goldsmith, R. (1969). Financial Structure and Development, New Haven: Yale University Press
Iganiga, B.O and Asemotan, A. (2008). The Nigerian Unorganized Rural Financial Institutions and Operations: A Framework for Improved Rural Credit Schemes in a Fragile Environment, Journal of Sociology and Science, 17(1), 63-71
Kasim, M. Y., and Jayasooria, D. (2001). Informal economy, micro-finance and non-governmental organisations in Malaysia” Humanomics, 17 (1/2), 134-140
Komicha, H.H (2007). Farm Household Economic Behaviour in Imperfect Financial Markets Empirical Evidence and Policy Implications on Saving, Credit and Production Efficiency in Southeastern Ethiopia, Faculty of Natural Resources and Agricultural Sciences Department of Economics, Uppsala, doctoral thesis Swedish university of agricultural sciences Uppsala.
Lamberte, M. B., Vogel, R. C., Moyes, R. T. and Fernando, N. A. (2006). Beyond Microfinance: Building inclusive rural financial markets in Central Asia, Asian Development Bank .
McKinnon, Ronald I. (1973). Money and Capital in Economic Development,
Brookings Institution, Washington, DC
Mejeha, R.O and Nwachukwu, I.N. (2008). Microfinance Institutions in Nigeria, Munich Personal Repec Archive (MPRA), August, online at http://mpra.ub.uni muenchen.de/13711/ Mpra paper no. 13711 (accessed on 11/03/13)
Mohammed, A.D. and Hasan, Z. (2008). Microfinance in Nigeria and the Prospects of Introducing its Islamic there in the Light of Selected Muslim Countries’ Experience Munich Personal RePEC Archive (MPRA) MPRA Paper No. 8287: 1 19
Nelson, A. G. and Murray, W. G. (1967). Agricultural Finance, Iowa,USA., Iowa State University Press.
Olawepo, R.A and Ariyo, B. (2011). Facilitating Rural Transformation through Community Banking: An Example from Kogi State, Nigeria, International Journal of Business and Social Science 2 (5).
Onwumere, J.U.J (2005). Business and Economic Research Method, Lagos; Don-Vinton
Limited.
Osinubi T.S (2003). Urban Poverty in Nigeria: A case study of Agege Lagos state in Nigeria, (Retrieved from http://www.depot.gdnet.org/newkb/fulltext/osinubi.pdf on 12/05/13))
Sapovadia, V. K. (2006). Microfinance: the pillars of a tool to socio-economic Development, Development Gateway, 2006.Retrieved from http://ssrn.com (Accessed on 12/12/13)
Shaw, E. S. (1973). Financial Deepening in Economic Development, New York: Oxford University Press
Vanguard (2011). Relief as NDIC pays off closed MFBs’ customers , The Vanguard Newspaper, (www.vanguardngr.com/2011/01/relief-as-ndic-pays-off-closed-mfb, Accessed on 12/01/13)
Von Pischke, J.D. (1991). Finance at the Frontier. Debt Capacity and the Role of Credit in the Private Economy, the World Bank, Washington, D.C.
World Bank (2006). Equity and development: Overview of World Development Report Washington, D.C
Yaron, J. (1992). Assessing Development Finance Institutions - A Public Analysis, World Bank Discussion Paper 174, Washington, D. C
Yi Luo, L. and Hku, M.A. (2006). Regional Economic Development and the Establishment of the Rural Financial System : A case study of Rural Credit Co-operations in the Pearl River Delta”, A dissertation submitted in partial fulfilment of the requirement for Masters of Arts in China Development Studies at The University of Hong Kong
Z
In-Text Citation: (Udeh, Eneje, & Ani, 2018)
To Cite this Article: Udeh, A. I., Eneje, B. C., & Ani, M. U. (2018). Impact Of Microfinance In Promoting Rural Economic Growth In Nigeria. International Journal Of Academic Research In Economics And Management Sciences, 7(4), 166–179.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode