IMPACT OF MICROFINANCE INSTITUTION SERVICES ON YOUTH EMPOWERMENT IN KATSINA STATE NIGERIA: THE ROLE OF AGENCY BANKING
Habibu Zayyana and Usman Junaidu (PhD)
Volume 3 Issue 2
Abstract
The services provide by microfinance institutions, such as account opening, loans offering, deposits acceptance, and bill payments facilitation, have the potential to enhance youth empowerment by fostering employment opportunities, raising income levels, improving living standards, and enhancing the overall quality of life. This study assesses this potential by examining the direct effects of microfinance institution services on youth empowerment and indirectly, through the activities of bank agents in Katsina state, Nigeria. The study employed a cross-sectional survey method to collect primary data from 360 youth who actively engage in bank agency services across three senatorial zones in the state. The collected data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The results indicate that microfinance institution services have a positive direct effect on youth empowerment and also indirect effects through the activities of bank agents. Based on the findings, the study recommends strengthening agency banking activities, increasing access to microfinance institution services, promoting entrepreneurship development, and enhancing living standards to boost youth empowerment. Keywords: Agency Banking, Microfinance Institutions, Youth Empowerment, PLS-SEM
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