A Review of Microfinance as a Catalyst for Economic Empowerment in Developing Nigerian Economy

¹KEHINDE, S.O., ²OMBUGADU, B.A., AND ³ZUBAIRU, I.T.

¹Department of Banking & Finance, Federal Polytechnic, Bida Niger State

            ²Department of Accountancy, Nassarawa State Polytechnic, Lafia Nassarawa State

³Department of Business Administration & Management, Federal Polytechnic, Bida

E-mail:kenny4victry@g.mail.com;

ABSTRACT

This paper on Microfinance Banking as a Catalyst for Economic Empowerment reviews the task and activities of microfinance banks by discussing the past initiatives, the current policy, and the justifications for establishing MFBs as well as the implications of the current policy on some economic challenges in the country within the context of achieving the Vision 20-20-20 agenda. The study is a desk research which relies basically on secondary data where textbooks, journals and periodicals were consulted to arrive at the conclusion and recommendations. It is then concluded that many rural communities do not have functional microfinance bank, even those that have do not have access to loan facilities because the microfinance banks are not adequately funded by the government to cater for the people’s welfare. The writer therefore recommends that though microfinance policy is good and especially coming at a time the country is poised to joining the league of the twenty largest economies in the world by the year 2020, the number of Microfinance Banks has to increase. Also, adequate and quality social infrastructural facilities should be provided to create viable microfinance activities as human beings can only be economically active if there are facilities to work with to enable them perform optimally in their chosen activities.