MICROFINANCE POLICY IN NIGERIA AND FINANCIAL INCLUSION AMONG RURAL DWELLERS IN ENUGU STATE
Keywords:
Microfinance policy, Microfinance banking, Financial inclusion, Financial services, Rural areas, Rural dwellers, DevelopmentAbstract
The research investigated the extent of financial inclusion among rural dwellers in Enugu State within the framework of microfinance banking. The specific objectives of the study were to:(i) find out the extent of establishment of MFBs in Enugu State, (ii) investigate the scope of financial services or products of the MFBs available to the rural dweller in Enugu State, (iii) establish the pattern of spread of the MFBs in Enugu State, (iv) find out the extent of progress in MFBs branch expansion to the rural areas in Enugu State, and (vi) establish the challenges to optimal financial inclusion of the rural dwellers by MFBs in Enugu State. In order to effectively carryout the research, a survey research design methodology was adopted. The major source of data or information was fieldwork observation, questionnaire and secondary source like books, journals, among others. The key findings were that the number of established MFBs in Enugu State is not adequate for meaningful financial inclusion, the spread of MFBs in Enugu State is biased against the rural areas, both branch and customer holding expansion of the MFBs is very low. The study, in the context of the findings concluded that microfinance banks have not served as an effective framework for financial inclusion among the rural dwellers in Enugu State. Given this, the study recommended, among others, that government should encourage investors to establish MFBs in the rural areas, MFBs should beef up its effort at mobilizing rural dwellers to embrace banking services.