The crucial role of finance as a major
determinant of successful economic undertakings and the apparent weakness of
micro and small scale business operators in having access to required financial
resources, have led to the current interest in micro-finance institution and
organization various government and non governmental organization have
implemented one kind of micro credit service or the other. The yet to be
implemented micro-finance policy.
Regularly and supervisory framework is
designed to stream line operation of micro-finance providers and to realign
their structure for effective control and regulation by the central banks of
Nigeria.
Purpose is to stimulate economic
development through gross roots empowerment of rural dewellers and micro/small
business operator in urban centers. There are arguments for
and against the use of micro finance institutions as instrument of economic
development. In spite of obvious limitations micro finance institution have
high prospects for effective
transformation of rural economy provided that the registered micro finance
banks subject their operations to make forces.
It is also important that special schemes
should be implemented for the core poor, who may be unable to utilize services
of the micro finance banks.