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The Impact of Microfinance on Rural Economic Growth: The Nigerian Experience

Author

Listed:
  • E. Chuke Nwude

    (Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria,)

  • Kenneth Chikezie Anyalechi

    (Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Nsukka, Enugu Campus, Enugu State, Nigeria.)

Abstract

The paper examines the impact of microfinance activities on rural economic growth and savings in Nigeria for the period 2000 2015. The ordinary least square regression was used as the technique of analysis. The findings show that the introduction of micro finance banking in Nigeria have not contributed to agricultural productivity but had assisted in increasing rural savings habits in Nigeria. As a means of improving rural economic growth in Nigeria the recommendations are that government should make conscious efforts to provide basic infrastructures in the rural areas to motivate micro finance institutions to locate their offices there; micro finance institutions should be encouraged to lend to rural dwellers based on relationship lending; some farm productive resources should be diversified to reduce farming risk, especially risk related to unpredictable extreme weather that may be due to climate change to increase productivity.

Suggested Citation

  • E. Chuke Nwude & Kenneth Chikezie Anyalechi, 2018. "The Impact of Microfinance on Rural Economic Growth: The Nigerian Experience," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 8(4), pages 27-31.
    • Handle: RePEc:eco:journ1:2018-04-4
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    References listed on IDEAS

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    Cited by:

    1. Omorose A. Ogiemudia & Igbinovia Lawson Eghosa & Amenze S. Airhiavbere, 2022. "MICROFINANCE BANKS OPERATIONS AND ECONOMIC DEVELOPMENT IN NIGERIA The paper explored the influence of Microfinance Banks (MBs) on Economic Development (ED) in Nigeria. It was embarked upon against the background that as statutory function, loans shou," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 7(2), pages 75-86, Septembri.
    2. Svitlana Cheremisina & Volodymyr Rossokha & Oleksandr Nechyporenko & Olena Mazurenko & Hanna Trofimova & Iryna Artimonova, 2025. "Methodology for Evaluating the Efficiency of Bank Lending To Enterprises of the Agricultural Sector of the Economy in Ukraine in the War Conditions," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 73-91.
    3. Amaluddin, Amaluddin & Indiastuti, Rina & Effendi, Nury & Cupian, Cupian, 2024. "Rural ICT Penetration, Bank Credit, and Agricultural Sector Performance: A Panel ARDL Analysis in Eastern Indonesia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(01), March.

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    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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