Microfinance Credit and Nigeria’s Economic Growth
Amana, S. A., Amana, A. E., & Abubakar, I. A.
ABSTRACT
Microfinance institutions provide loans, savings and other financial services to low income earners and the poor of the society, thereby creating jobs and enhancing the growth of rural areas. Microfinance has become a revolutionary mechanism used in fighting poverty in most developing countries. However, micro- finance institutions in Nigeria have not made significant progress in the programs and policies of alleviating poverty in the society. Data on the exogenous and endogenous variables were collected from CBN statistical bulletin and analyzed via the use of OLS. It was found that microfinance credit has significant effect on the economic growth of Nigeria. This study recommends that microfinance banks in Nigeria should be encouraged by the regulators to increase the quantum of microfinance credits to the poor economically active citizens and to the small and medium enterprises.
