IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/88396.html

Traditional Financial Institutions and Rural Enterprises in Nigeria: The Case of Ogoni Land

Author

Listed:
  • Ettah, Bassey E.
  • Onye, Kenneth U.
  • Daasi, Gibson L.K.

Abstract

This paper examines the role of the traditional financial institutions (TFIs) in the development of micro and small scale enterprises (MSEs) in Ogoni land. The methodology adopted for the study is based on the Paired Observation Test (POT). By adopting an empirical analysis of field data, the paper sought to ascertain the role of some forms of TFIs (the Osusu scheme) in the growth and development of MSEs. The assessment is based on analysis of the involvement of MSEs operators in the Osusu scheme, their total turnover on investments and number of people employed after six years of involvement in the scheme. It also reviews the strengths and challenges of the system in Ogoni and offers some suggestions for strengthening it. Relying on the paired observation test, the results of the study indicates that TFIs generally contributes to the development of the MSEs in Ogoni. However, the Osusu system favours the development of organized MSEs than unorganized MSEs. The study identifies self-regulation as the major setback on the efficacy of TFIs in fostering the growth of MSEs in Ogoni and recommends a system of regulation that may replicate that of the Association of Micro-finance Banks of Nigeria. Increased awareness, periodic supervision and monitoring of the activities of the TFIs are also recommended.

Suggested Citation

  • Ettah, Bassey E. & Onye, Kenneth U. & Daasi, Gibson L.K., 2012. "Traditional Financial Institutions and Rural Enterprises in Nigeria: The Case of Ogoni Land," MPRA Paper 88396, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:88396
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/88396/1/MPRA_paper_88396.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Miracle, Marvin P & Miracle, Diane S & Cohen, Laurie, 1980. "Informal Savings Mobilization in Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 28(4), pages 701-724, July.
    2. Mead, Donald C. & Liedholm, Carl, 1998. "The dynamics of micro and small enterprises in developing countries," World Development, Elsevier, vol. 26(1), pages 61-74, January.
    3. Liedholm, Carl & Mead, Donald C., 1987. "Small Scale Industries in Developing Countries: Empirical Evidence and Policy Implications," Food Security International Development Papers 54062, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Aryeetey, Ernest, et al, 1997. "Financial Market Fragmentation and Reforms in Ghana, Malawi, Nigeria, and Tanzania," The World Bank Economic Review, World Bank, vol. 11(2), pages 195-218, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    2. Paul A. Dorosh & John W. Mellor, 2013. "Why Agriculture Remains a Viable Means of Poverty Reduction in Sub-Saharan Africa: The Case of Ethiopia," Development Policy Review, Overseas Development Institute, vol. 31(4), pages 419-441, July.
    3. Richard Black & Adriana Castaldo, 2009. "Return Migration And Entrepreneurship In Ghana And Côte D’Ivoire: The Role Of Capital Transfers," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(1), pages 44-58, February.
    4. Mellor, John W., 2014. "High rural population density Africa – What are the growth requirements and who participates?," Food Policy, Elsevier, vol. 48(C), pages 66-75.
    5. Aili Mari Tripp, 2001. "Non-formal Institutions, Informal Economies, and the Politics of Inclusion," WIDER Working Paper Series DP2001-108, World Institute for Development Economic Research (UNU-WIDER).
    6. Masakure, Oliver & Cranfield, John & Henson, Spencer, 2008. "The Financial Performance of Non-farm Microenterprises in Ghana," World Development, Elsevier, vol. 36(12), pages 2733-2762, December.
    7. Jianqing Ruan & Xiaobo Zhang, 2009. "Finance and Cluster-Based Industrial Development in China," Economic Development and Cultural Change, University of Chicago Press, vol. 58(1), pages 143-164, October.
    8. Jolanda Hessels & Peter van der Zwan, 2011. "Entrepreneurial exit, ability and engagement across countries in different stages of development," Scales Research Reports H201116, EIM Business and Policy Research.
    9. Blessing Atwine & Ibrahim Mike Okumu & John Bosco Nnyanzi, 2023. "What drives the dynamics of employment growth in firms? Evidence from East Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-25, December.
    10. Agyenim Boateng & Muhammad D. Abdulrahman, 2013. "Micro Small-sized Enterprises and Bank Credit," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 12(2), pages 129-150, August.
    11. Kweka, Josaphat & Fox, Louise, 2011. "The household enterprise sector in Tanzania : why it matters and who cares," Policy Research Working Paper Series 5882, The World Bank.
    12. Ilmiawan Auwalin, 2021. "The effect of a credit policy change on microenterprise upward transition and growth: evidence from Indonesia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 611-636, December.
    13. Marina Della-Giusta & Christine Phillips, 2006. "Women entrepreneurs in the Gambia: challenges and opportunities," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1051-1064.
    14. Barseghyan, Levon & DiCecio, Riccardo, 2011. "Entry costs, industry structure, and cross-country income and TFP differences," Journal of Economic Theory, Elsevier, vol. 146(5), pages 1828-1851, September.
    15. Thorsten Beck, 2003. "Small and medium enterprises, growth, and poverty : cross-country evidence," Policy Research Working Paper Series 3178, The World Bank.
    16. Bulent Guloglu, 2003. "Financial Liberalisation and Economic Growth: A Panel Data Approach," Istanbul Stock Exchange Review, Research and Business Development Department, Borsa Istanbul, vol. 7(27), pages 35-58.
    17. John Victor Mensah & Michael Tribe & John Weiss, 2007. "The small-scale manufacturing sector in Ghana: a source of dynamism or of subsistence income?," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(2), pages 253-273.
    18. Jonathan Fu & Annette Krauss, 2024. "Preparing fertile ground: how does the quality of business environments affect MSE growth?," Small Business Economics, Springer, vol. 63(1), pages 51-103, June.
    19. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    20. Hernan Moscoso Boedo & Toshihiko Mukoyama, 2012. "Evaluating the effects of entry regulations and firing costs on international income differences," Journal of Economic Growth, Springer, vol. 17(2), pages 143-170, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:88396. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.