THE ROLE OF MICRO FINANCE BANKS IN POVERTY ALLEVIATION IN NIGERIA.

Abstract Poverty connotes deprivations or denials of certain needs, services and denials of all attributes of human development. Poverty crashed the human spirit, three billion people, half the world’s population lives in less human needs. Poverty traps future generation in a vicious cycle with hope or opportunity, in an increasingly globalize world on one is immune to these. The objective of this research work is to examine how microfinance bank will help in poverty alleviation in Nigeria. The data was obtained through both primary and secondary source. The primary sources were gotten from questionnaire issued to respondents and oral interview. The secondary source include in the review of literature where works of other authors published in journals, textbooks. Newspapers and internet. Furthermore, to analyze the data collected, the researcher had made use of table and statistical tools such h as chi-square and percentage method. Finally, the intensive study, however was founded up with findings which includes credits provided by MFBs, these has an increasing effect on investment among the low income groups creating employment since self loan is given for investment. Interest charged on loan/advance had an adverse effect, although cheaper than Universal banks. Base on recommendation, government should support microfinance banks in order to encourage hoe income earners and place adequate measure to know the people that actually needed the credit. To enlighten the individuals on the needs of saving and borrowing from microfinance banks and they can use the funds borrowed for investment. Government should introduce worker that will monitor credit diversion and direct appropriate sectors.

TABLE OF CONTENTS Title page Dedication Acknowledgement Abstract Table of contents CHAPTER ONE BACKGROUND OF THE STUDY  STATEMENT OF THE PROBLEM  OBJECTIVES OF THE STUDY              RESEARCH QUESTIONS  HYPOTHESIS  SIGNIFICANCE OF THE STUDY   SCOPE AND LIMITATION OF THE STUDY  REFERENCES CHAPTER TWO  REVIEW OF RELATED LITERATURE 2.1 AN OVERVIEW OF MICRO FINANCE ACTIVITIES  2.2 MOBILIZATION OF SAVINGS BY MICROFINANCE BANKS  2.3 CREATION OF CREDIT FACILITIES BY MICROFINANCE 2.4 MICRO-FINANCE KEY TO POVERTY REDUCTION   2.4.1 FUNCTIONS PERFORMED BY MICROFINANCE TO REDUCE POVERTY  2.4.2 BENEFIT OF MICRO FINANCE BANKS  2.5 EXTENSION OF LOAN BY MICRO FINANCE BANKS WITHOUT SECURITIES  2.6 POVERTY A GLOBAL PROBLEM 2.6.1 CAUSES OF POVERTY IN NIGERIA  2.6.2 THE IMPLICATION OF POVERTY  2.7 WHAT DOES MICROFINANCE BANKS INTEND TO ACHIEVE?  2.8 WHO IS A MICRO FINANCE CLIENT? 2.9 THE MICRO FINANCE VISION AND POLICY  2.9.1   POLICY OBJECTIVES  2.9.2 POLICY TARGETS  2.9.3 POLICY STRATEGIC  2.10 FRAMEWORK FOR THE SUPERVISOR OF MICRO FINANCE BANKS  2.10.1 ESTABLISHMENT OF A NATIONAL MICRO FINANCE CONSULTATIVE COMMITTEE  2.10.2 CREDIT REFERENCES BUREAU  2.10.3 RATING AGENCY  2.10.4 MANAGEMETN CERTIFICATION PROCESS  2.10.5 APEX ASSOCIATION OF MICROFINANCE INSTITUTIONS 2.10.6 LINKAGE PROGRAMME  2.10.7 ESTABLISHMENT OF A MICROFINANCE DEVELOPMENT FUND.  2.10.8 PRUDENTIAL REQUIREMENT  2.10.9 DISCLOSURE OF SOURCES OF FUNDS  2.10.10 CORPORATE GOVERNMENT FOR MICROFINANCE BANKS  2.10.11. DEPOSIT INSURANCE SCHEME  REFERENCES CHAPTER THREE 3.1 RESEARCH DESIGN AND METHODOLOGY 3.2 SOURCE OF DATA   3.2.1 Primary data  3.2.2 Secondary data  3.3 THE POPULATION OF THE STUDY  3.4 SAMPLE SIZE AND SAMPLE  3.5   METHOD OF DATA ANALYSIS  REFERENCES CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION 4.1 PRESENTATION OF DATA  CHAPTER FIVE FINDINGS, RECOMMENDATIONS AND CONCLUSION 5.1 FINDINGS 5.2 RECOMMENDATIONS  5.3 CONCLUSION  BIBLIOGRAPHY