Microfinance Banks and Rural Development in Nigeria (2007-2012)

Abstract

The deplorability of the life of rural dwellers in spite of the government’s rural development programmes reveals the “poverty of poverty programmes” and the need to consider innovative approach that makes available financial resources for adequate rural transformation in Nigeria. Access by the poor to financial services enables them to have control over factors of production, be more self-reliant, generate
employment, enhance household income and create wealth. Microfinance Banks deal with the provision of financial services to the poor who are traditionally not served by the conventional financial institutions (Nwanyanwu,n.d) in the country. Through the utilization of both primary and secondary sources of data collection, the study reveals the role of Microfinance Banks in rural transformation and development in Nigeria. The study also revealed the weak institutional capacity and weak economic empowerment of rural dwellers in the country. Thus, the study concludes that microfinance policy and programmes are good empowerment measures which if properly managed would go a long way in improving the condition of lives of the rural dwellers.