AN INVESTIGATION OF THE CONTRIBUTIONS OF MICROFINANCE BANKING INSTITUTION TO CAPITAL FORMATION IN NIGERIA(1992-2010)
ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE
PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE
TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO
PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN
CALL: 08068231953, 08168759420
AN
INVESTIGATION OF THE CONTRIBUTIONS OF MICROFINANCE BANKING INSTITUTION TO
CAPITAL FORMATION IN NIGERIA(1992-2010)
CHAPTER ONE
Background
of the study
Microfinance has emerged as an effective
strategy for poverty reduction. Across developing countries (Nigeria for
example) micro, small and medium enterprises are turning to microfinance
institutions (MFIS) for an array of financial service-microfinance is
acknowledged as one of the prime strategies to achieve the millennium
development goals (MDGs)- access to sustainable financial service enable owners
of micro enterprises to increase their capital base, build assets and reduce
their vulnerability to external stocks. Access to financial services enable
poor household to move from everyday struggle for survival to planning for the
future, investing in better nutrition their children’s education, health and
empowering women especially.
However, the potency of microfinance as a
development strategy is
contingent
upon the existence of microfinance institutions which:
1. Have adequate outreach and more impact on
poverty
2. Achieve financial and operating
self-sufficient
3. Deliver responsive services to micro and
small enterprise
Microfinance
is the study of loans, savings and other basic financial services to the poor
who are traditionally not served by the conventional financial
institution.
These owners
of micro and small enterprise require a diverse range of financial instruments
to meet working capital requirement, build assets, stabilize consumption and
shield themselves against risk. According to Ehigiamusoe (2008) microfinance
primarily focuses on alleviating poverty through provision of financial
services to the poor or owners of micro enterprises. Services users include
artisans, small holder farmers, food processors petty traders and other persons
who operate micro enterprises according to (Okereke et al 2009). The financial
services include working capital loans, consumer credit, savings pension etc.
in practice, microfinance is much more than disbursement management and
collection
of little bits of loans.
Microfinance
is not charity organization despite its application as “poverty lending”.
Primarily microfinance seeks to create access to credit for the poor who
ordinarily are locked out of financial services in the formal financial market
for reasons of their poverty that is lack of command over assets. If therefore
places obligation on the borrowers for proper utilization and complete
repayment of the borrowed amount even at commercial interest rate.
Microfinance is not new especially history we
come across schemes and social arrangement, which enable people to poor their
financial resources for onward distribution to co-operating and needy
individual. Example includes “adachi” and several variants of “esusu”. Nigerian
microfinance institutions have also intergraded best practice of traditional
schemes into the operational procedures.
1.2 STATEMENT OF THE PROBLEM.
Although microfinance services have Endeavour
to offer financial services to the vulnerable groups, (youth, women
especially), their impact on the economic activities of the beneficiaries still
remain low due to its high operating cost, repayment problem, in adequate
experienced credit staff, client apathy and dropout, internal control
challenges etc. for instance the percentage dropout rate of FINCA wobulenzi
beneficiaries stands at 33% on average (FINCA internal annual management report
2004).
Some dropout
may be due to improvement on welfare of the bank or the interest rate while in
other cases some have lost –even the little they used to own (Nakalnesi, 2003)
this therefore sets the basis for the study.
1.3 OBJECTIVES OF THE STUDY
The study was guided by the
following objectives:
1. To examine the nature of financial
services offered by microfinance institutions to the rural communities
2. To identify the indicators of growth in
economic activities of microfinance beneficiaries in Nigeria.
3. To establish the contribution of
microfinance banking to capital formation in Nigeria.
4. To design appropriate strategies that will
increase the outreach of microfinance institutions so as to enhance economic
development and growth in Nigeria.
5. To solve the problems of inadequate
experienced credit staff, client apathy and dropout, high operating cost repayment
problems etc.
1.4 Research Questions
The following research questions are
formulated to enable us find lasting solutions to the problems of this study:
1. Of what importance are the contributions
of microfinance banks?
2. How does a microfinance bank credit a
small and medium scale enterprise on capital formation?
3. Do microfinance banks enhance individual
household ability to accumulate assets and create wealth?
4. Is it important for microfinance banks to
aid in the facilitation of rural transformation?
5. How do microfinance banks engage in making
finance assessable to enlarge segment of the Nigerian population?
6. How do microfinance banks create capital?
1.5 HYPOTHESIS FORMULATION
For a purposeful data collection and
interpretation the following hypothesis are hereby formulated
Hypotheses 1
Ho: Microfinance banks loans and advances to
rural people have not contributed much to capital formation
Hi:
Microfinance banks loans and advances to rural people have contributed much to
capital formation
Hypotheses 2
Ho:
Microfinance bank credit to small and medium scale enterprise of agriculture
and fishery don’t have much impact on capital formation
Hi: Micro
finance bank credit to small and medium scale enterprise of agriculture and
fishery have much impact on capital formation.
Hypotheses 3
Ho:
Microfinance bank investments are not good tools for the formation of
capital.
Hi:
Microfinance bank investments are of good tool for the formation of
capital
1.6 SIGNIFICANCE OF THE STUDY
Poverty is a
major challenge facing Nigeria as a country. Many people continue to suffer
deprivation even as reforms continue successful. This condition is being
addressed to avoid a divide that can engulf Nigeria as a country and the only
way to curtain this divide is by expanding opportunities to the poor through
microfinance.
Microfinance
itself is not a new phenomenon in the Nigerian society as evidence by some
cultural economic activities like the “Esusu”, “Aso”, “Otataje”, etc. which
were practiced to provide funds for producers in our rural communities. What is
current however is the effort of the government of Nigeria to modernize micro
financing in our rural and urban communities so as to improve the productive,
capacity, enhance their economic standing which alleviate the level of poverty
and aggregate to improve development of the national economy. Therefore the
significance or importance of this research is to look at how micro financing
through the help of the government can help improve the lives and standard of
living of individuals or citizens in the rural and urban areas.
There by
helping to alleviate poverty and ensuring economic development of the nation at
large.
1.7 SCOPE OF THE STUDY (1992-2010)
The research work study expected to appraise
the contributions of
microfinance
banking institution to capital formation in Nigeria. As a result, all works
microfinance banks instituted at Mberi in Owerri was chosen as a case study out
of the numerous microfinance banks in Imo state.
1. Time: This constitutes a major problem for
the research due to the fact that the study was carted out during the academic
period, it became a huge problem attending lectures and going about the
organization of the study.
2. Lack of information: there was also
difficulty in getting the required information especially from workers of the
firm. Also laying hands on literatures that has treated these matters was also
an impediment to the flow of the required information.
3. Inadequate materials: this constitutes a
hindrance to an effective research work. The insufficient supply of literatures
such as books, journals was also
a problem.
Even when seen, they are either out dated or out of use for referencing
purpose.
4. Financial resources: Cost implication on
conducting and presenting this research work was enormous. Buying materials
needed for this study cost a
lot.
Notwithstanding
these constraints, the research was well conceived and packed to serve the
purpose of which it is intended, which is to look at the various contribution
of microfinance banking institutions of capital formation in Nigeria.
1.9 ORGANIZATION OF THE STUDY
In the course of achieving the stated
objective of this study, this work has been arranged under five chapters to
deal with the relevant issues f the topic.
Chapter one
gave an average of the background of the study significance of the study, the
limitation, scope of the study, organization of the study and definition of
terms.
Chapter two
reviews the relevant literature by explaining the conceptual framework of the
topic in question. Chapter three contains the research methodology used in the
research including the design, source of data and method of data analysis,
while chapter four dealt with the presentation and analysis of data, which
highlighted the data collection, the data was properly analyzed and discussed
therein.
Finally
chapter five dealt on the summary of findings, conclusion and recommendations.
Hence bibliography and relevant areas for further reading inclusive in the
research.
1.10
DEFINITION OF TERMS
Engle: To
surround, cover some body or something completely
Constraint:
A thing that limits or restricts something or your freedom to do something
Alleviation:
To make something less sever
Potency: The
power that somebody or something has to affect your body or mind.
Vulnerability: Week and easily hurt physically or
emotionally
Disbursement:
To pay money to somebody from a large amount that has been collected for
purpose
Utilization:
To use something especially for a particular purpose
Sustainability:
Involving the use of natural product and energy in a way that does not harm the
environment or that can continue or continued for a long time.
Dequincy:
Bad or critical behaviour, usually of young people
Appellation:
A name or title
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will
like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank
Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment