AN INVESTIGATION OF THE CONTRIBUTIONS OF MICROFINANCE BANKING INSTITUTION TO CAPITAL FORMATION IN NIGERIA (1992-2010)

ABSTRACT

This research study concerns itself basically with the investigation with microfinance bank institution to capital formation in Nigeria, in analyzing this research study, unitary test was adopted and the instrument used for obtaining the data is secondary data from CBN statistical bulletin. The information collected from the secondary data, helps the researcher to analyse how microfinance bank work and meet the expectation of the government and the people. Having the dependent variable as gross fixed capital formation testing the strength of independent variables inflation, loans and advances and interest rate which shows 65 percent change in the dependent variable. The researcher therefore went ahead to recommend that the importation of goods which can be produced in Nigeria should be banned as this will give our indigenous investors the zeal and challenge to do more exploits in research. Finally the researcher therefore concluded that financial support to microbusinesses, small and medium scale industries SMIS in developing countries like Nigeria.

TABLE OF CONTENT

Title Page i

Approval Page ii

Dedication iii

Acknowledgement iv

Abstract vi

Table of content vii

CHAPTER ONE: INTRODUCTION

Background of the study 1

Statement of the problem 3

Objectives of the study 4

Research questions 5

Hypothesis formulation 5

Significance of the study 7

Scope of the study 8

Limitation of the study 8

Organisation of the study 9

Definition of terms 10

CHAPTER TWO

Literature review 12

Introduction 12

Background of the study 13

Overview of microfinance activities in Nigeria 16

Justification for the establishment of microfinance bank 18

Operational guideline for microfinance institution 27

Evaluation of microfinance bank 28

Evaluation of microfinance banks in other countries 35

Improving microfinance banking in Nigeria 39

The contribution of microfinance banking to capital formation in Nigeria 44

Effective credit supply of microfinance 59

CHAPTER THREE

Research design 68

Overview 68

The model 69

Specification of variable 70

Economic apriori 71

Evaluation techniques 71

Econometrics 72

CHAPTER FOUR

Presentation and analysis of result 74

Battery test 74

Presentation and interpretation of result 74

Economic apriori criteria 78

Statistical criteria first order test 79

Econometric criteria 83

CHAPTER FIVE

Summary 89

Conclusion 92

Recommendation 94

Bibliography

Appendix