IMPACT OF MICROFINANCE INSTITUTIONS ON ECONOMIC DEVELOPMENT IN NIGERIA
Habibu Zayyana and Salimatu Rufai Mohammed (PhD)
Volume 2 Issue 2
Abstract
This paper employed autoregressive distributed lag (ARDL) technique for cointegration to empirically examine the impact of microfinance institutions on economic development in Nigeria, using time series data covering the period of 1991-2020. The paper found a cointegration relationship between microfinance institutions and economic development in Nigeria. The findings also showed that microfinance deposit, loan and investment have positive and significant impact on economic development in Nigeria in the long-run. Base on the findings, the paper recommends that, microfinance institutions should expand their financial services to meet the financial requirements of the poor, low-income groups and micro-entrepreneurs. The Central Bank of Nigeria (CBN) should also continue its effort of introducing appropriate microfinance policy which is critical to the development of sustainable microfinance institutions. Keywords: Microfinance Institutions, Deposit, Loan, Investment, Economic Development, ARDL, Nigeria
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