Role of Microfinance Banks in the Economic Development of Nigeria: A Yobe State Approach

Abstract

This research will assess the role of Microfinance Banks in the Economic Development of Nigeria with special reference to Yobe State. Micro finance Banks (i.e small scale financial services that are economically active at urban and rural areas) has been proven to be effective in fighting poverty by providing entrepreneurs with the necessary capital to start and expand their entrepreneurial activities. The study used descriptive research design. Since data characteristics were described using frequencies and percentages. A simple random sampling technique was used in this study were one hundred (100) employees of Micro Finance Banks in Yobe state. The study employed the use of Statistical Package for Social Sciences were correlation was accessed. The study revealed that Since the p-value= 0.000 is less than the level of significance (0.05), we reject the null hypothesis and then conclude that Micro Finance Banks do greatly contributed to entrepreneurial productivities. The study recommends that the government should provide financial and logistical support to MFBs to expand their operations, especially in rural areas and strengthen security measures to create a stable environment for economic activities; The MFBs should conduct financial literacy programs to educate communities on the benefits of microfinance services and equally Train MFB staff on risk management and innovative financing solutions; The MFBs should encourage digital banking solutions to reach remote areas and reduce operational costs; The MFBs should finance project to give a revolving loan targeted at mass empowerment and self-employment for the unemployed in the state micro finance project would help to tackle the high bate of poverty and among others.