The importance of finance in any
economy, developed or developing cannot be over stated. It is the determinant of
the level of economic activities in the society, the life wire and necessary
ingredient that determine the success of failure of economic undertakings. Lack
of finance leads to economic frustration and retards growth (Andreder, 1973).
The problem of lack of finance is
particularly noticeable in the rural agricultural communities and amongst micro
and small-scale enterprises.
This is because the rural areas are
largely embanked and even in urban centers, the micro and small scale
enterprises have limited access to bank credit facilities, on account of their
of their often over-stressed inability to articulate document lending proposals
backed up with acceptable collateral securities given that preponderance of
Nigeria population who live in the rural agricultural
Communities and who engage I micro small
scale business in urban centers, live blow poverty line (Akanji 2001). Nigeria
cannot achieve the desired economic Transformation unless effective strategies
are put in place to economically empower those at the lowest running of nations
socio0economics ladder. It is in the light of this imperative that Nigerian
government over the years have made efforts to create access of the active poor
to financial resources through micro financing. An overview of past and present
micro finance institution will be taken in the next section followed by a lighlight on the new micro
finance policy, regulatory and supervisory frame work. The meaning of economic
development will be explored. This is to
be followed by an examination of economic development profentials of micro
finance institution.
Conclusion will be draw on issues
discussed and recommendation made.