THE ROLE OF MICRO FINANCE BANKING IN THE DEVELOPMENT OF RURAL COMMUNITIES IN WARRI SOUTH LOCAL GOVERNMENT AREA
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Abstract
The focus of this study was to appraise the role of Micro Finance banking in the development of rural communities in Warri South Local Government Area. To the enable the study achieve its objectives, six research questions were raised. The major instrument for data collection for the study was self- constructed questionnaire. A total of three hundred and thirty-two (332) participants selected from communities in the area under study as well as fifty members of staff of micro finance banks in the area under study constituted the sample for the study. Data collected were analyzed using frequency count, simple percentage, bar and pie charts and mean score standard to analyze the collected data. Findings from the study revealed that the various financial services
offered by the micro finance banks in Warri South Local Government Area include provision of micro credit for business in the rural areas, loans to community members, and funds for the establishment of farmlands and that micro finance banks provides skill acquisition programme to the community members, training on economic skills for members of the community, loans for the establishment of business and enabled youths become self-employed. It was also discovered that the rural development activities pursued by the micro finance banks in the area include provision of water to the community, electrifying the community and repairing bad roads. However some of the challenges encountered by the micro finance banks in carrying out its activities
in the host communities include lack of or poor cooperation from members of the communities, insufficient fund and bad loans. Based on the findings, it was recommended amongst others that there is need for micro finance institutions to identify money ventures in the community and invest in them. This will enable communities have some funds at their disposal to carry out developmental projects on their own. Community members should be encouraged to participate in skill acquisition programmes
provided by micro finance banks. Effort should also be made at developing the human resources in the community through award of scholarships to students and micro finance banks should evolve policies that will enable them monitor the loans and credit facilities given to community members so as to ensure that they are recovered as at when due.
offered by the micro finance banks in Warri South Local Government Area include provision of micro credit for business in the rural areas, loans to community members, and funds for the establishment of farmlands and that micro finance banks provides skill acquisition programme to the community members, training on economic skills for members of the community, loans for the establishment of business and enabled youths become self-employed. It was also discovered that the rural development activities pursued by the micro finance banks in the area include provision of water to the community, electrifying the community and repairing bad roads. However some of the challenges encountered by the micro finance banks in carrying out its activities
in the host communities include lack of or poor cooperation from members of the communities, insufficient fund and bad loans. Based on the findings, it was recommended amongst others that there is need for micro finance institutions to identify money ventures in the community and invest in them. This will enable communities have some funds at their disposal to carry out developmental projects on their own. Community members should be encouraged to participate in skill acquisition programmes
provided by micro finance banks. Effort should also be made at developing the human resources in the community through award of scholarships to students and micro finance banks should evolve policies that will enable them monitor the loans and credit facilities given to community members so as to ensure that they are recovered as at when due.
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