MICRO-FINANCING IN NIGERIA, PROBLEMS, PROSPECTS, AND SOLUTIONS: ( A CASE STUDY OF SMALL AND MEDIUM SCALE ENTERPRISES IN ENUGU NORTH METROPOLIS)

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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