Micro Financing and Economic Development: A Sectorial Microcredit Study from Nigeria
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 08
Abstract
This study examined the effect of sectorial microcredit allocation on Nigeria economic development. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin from 1992-2019. Nigeria per capita income was proxied for dependent variables while microcredit to agricultural sector, mining and querying, manufacturing sector, real estate and construction and transport and communication were proxies for independent variables. The study employed descriptive statistics and multiple regression models to estimate the relationship that exists between sectorial microcredit allocation and economic development. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The study found that 59 percent variation on Nigeria per capita income can be traced to variation on microcredit allocation to the various sectors of the economy. microcredit to transport and communication have positive and no significant effect, microcredit to real estate and construction have negative but no significant effect, microcredit to manufacturing sector have negative and significant, microcredit to mining and querying have positive and significant effect while microcredit to agricultural sector have positive and significant effect on Nigeria per capita income. From the findings, the researcher concludes that microcredit allocation have significant effect on Nigeria economic development. It recommends that for re-introduction of the abolished compulsory sectorial lending operation and sectorial reforms to attract microcredit. Microfinance banks should be encouraged to increase their branches so as to reach out and provide loans to more clients in order to achieve greater investment purposes. Government should further encourage the activities of micro finance banks by creating enabling environment so that they can further support the growth of business enterprises in Nigeria.
Authors and Affiliations
ZAAGHA, Alexander Sulaiman
Keywords
Related Articles
- EP ID EP705464
- DOI 10.47191/jefms/v4-i8-10
- Views 122
- Downloads 0
Aspects of Life Insurance Agents' Performance in Vietnam: A Study from the Impact of Customer-Oriented Behavior
This study examined the influence of life insurance agents' customer-oriented action research on aspects of agents' personal sales performance. In particular, the agent's performance is considered in terms of behavioral...
Users' Perception of NFC Technology in Digital Payment Transactions in Indonesia
Near Field Communication (NFC) technology is growing and starting to be used on mobile devices such as smartphones. However, there are still differences in the factors of user perception and acceptance of the use of the...
Impact of Religiosity on Purchase of Beauty Products in Pakistan
Religion is an integral component of Pakistani culture with a growing impact that cannot be belittled by advertisers. The purpose of this study is to understand the dominant purchase element and its impact over customer...
The Influence of Quality of Tourism Services and Products on Loyalty through Tourist Satisfaction at Selomangleng Cave Tourism, Kediri City
This research is entitled The Influence of Service Quality and Tourism Products on Loyalty through Tourist Satisfaction in the Selomangleng Cave Tourism, Kediri City, which aims to describe the influence of service quali...
Redefining Administrative Efficiency: Incorporating Imam Ali's Ethical Values into Moroccan Public Institutions
This article explores the importance of the ethical principles of governance described in Nahj al-Balagha letter 53, written by Imam Ali, for improving the performance of Moroccan public institutions. Faced with the chal...