Microfinance Institutions in Nigeria

Mejeha, Remy O. and Nwachukwu, Ifeanyi N. (2008): Microfinance Institutions in Nigeria.

Abstract

The advocation of micro – financing was triggered by the poor performance of the conventional finance sector. The essence was to reach the overwhelming population of the poor to assist in the drive to alleviate poverty. Barely a million had been provided with some credit in Nigeria while a yawning 40 million poor people are yet to be attended to. In terms of supply, commercial and development finance institutions are in the fore front of the outfits that provide credits to the microfinance institutions. Despite their efforts, rates of interest, inequitable distribution of wealth and income and outreaching the poor constitute challenges to the operations. The establishment of microfinance institutions in Nigeria was based on weak institutional capacity, weak capital base, existence of a huge unserved market, utilization of SMEEIS fund among other things

• Item Type: MPRA Paper
• Language: English
• Keywords: microfinance, financial institutions, agricultural credit and finance
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General

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