ABSTRACT
Against the background of severe and high incidence of
poverty in Nigeria, the past
Nigeria
governments have established institution to ameliorate and alleviate this
un-presented poverty in the land.
Among the institutions established by the previous
administrations are as follows. Operation Feed the Nation (OFN) of Gen.
Obasanjo 1979, Green Revolution of Shehu Shagari, 1982, Structural Adjustment
Programme (SAP) of Gen Babangida 1985, Better Life Programme (BLP) of Dr. Mrs.
Mariam Babangida, Agricultural Credit Guarantee Scheme fund. Etc, these
programmes were aimed at boosting the agricultural production of the citizenry
and raising the standards of living of the people.
In spite of all these moves it has been discovered that
most small scale enterprises and medium business organizations which
cooperative organization belong to, do not have access to adequate financial
service.
To this end, the CBN, on 15th of December
2005, launched a Micro Finance Policy which is also aimed to enhance and boost
economic activities of small business.
In this work or study, I shall consider the all
importance of microfinance, and how it promotes the activities of cooperative
businesses.
TABLE OF CONTENTS
Cover page ………………………………………………………………. i
Title Page…………………………………………………………………ii
Approval page………………………………………………………… iii
Dedication ………………………………………………………………iv
Acknowledgement ………………………………………………………..v
Abstract …………………………………………………………………vi
Table of content…………………………………………………vii-viii
CHAPTER 1
1.0 Introduction
1.1 General Overview of the Study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Scope of the study
1.5 Hypothesis
1.6 significance of the study
1.7 limitation of the study
1.8 Definition of terms
CHAPTER 2
2.0 Literature review
2.1. Introduction
2.2. Microfinance
defined
2.3. Microfinance activities
2.4 Microfinance institution
2.5 Microfinance institution banking in Nigeria
2.6 Microfinance
& co-operative as
framework
for development enterprise
2.7 Conclusion
CHAPTER 3
3.0 Research methodology
3.1 Introduction
3.2 Research design
3.3 Sampling design
3.4 Method of data collection
3.5 Procedure of processing data
CHAPTER 4
4.0 Presentation and Analysis of data
4.1. Introduction
4.2 Presentation of data
4.3 Analysis of data
4.4 Decision for test of hypothesis
4.5 Sample size
CHAPTER 5
5.0 Summary, Conclusions and recommendations
5.1. Introduction
5.2 Summary of Finding
5.3 Conclusions
5.4 Recommendations
Bibliography
Appendix
Questionnaire
CHAPTER ONE
1.0 INTRODUCTION
1.1 GENERAL OVERVIEW OF THE STUDY
It has been estimated that
there are 500 million economically active poor people in the world operating
small scale and medium businesses. Most of them do not have access to adequate
financial services.
Microfinance services are
financial services that poor people can qualify for. More broadly, it refers to
a movement in which as many poor and near-poor household as possible have
permanent access to.
Theoretically, microfinance
encompasses any financial service used by poor people including those they
access in the informal economy, such as loans, from a village money lender. In
practice, however, the term is usually only used to refer to institutive and
enterprises whose goods include both finance and empowerment of the poor.
The concept of the credit union
was developed by Friedrich W. Raiffeisen and his supporters. Their altruistic
action was motivated by concern to assist the rural population to break out of
their dependence on money lenders and to improve their welfare.
Although much progress has
been made, the problem has not been solved yet, and the overwhelming majority
of people who earn less especially in rural areas, they lack access to formal
financial leverage.
The concept of modern
microfinance was developed in 2004 by consultative group to assist the poor
(CGAP) and endorsed by the group of eight leaders at the G8 Summit on June 10th
2004.
(Christian, Robert Peck, Jayadeva, Vena and Rosenbery.
Financial institutions with a double bottom line, consultative group to assist
the poor from encyclopedia Washington 2004). The practical of microfinance in Nigeria
is culturally rooted and dates back to several centuries.
They are mainly of the
informal self – help group (SHGs). Rotating savings and credit Association
(ROSCAS), savings collectors and cooperative thrift savings societies.
These informal financial
institutions generally have limited resources to meet up with the demand. In
order to enhance the flow of financial service to Nigerian rural areas,
government has in the past initiated a series of publicly financed micro/rural
credit programmes and policies targeted at the poor.
Notable among such
programmes were the rural Banking programme, Agricultural credit guarantee
Selene Fund (AGSF) Nigeria Agric Agricultural Cooperative and Rural Development
Bank (NACROB) Nigeria Directorate of employment (NDE), Community Bank (CBS) and
family Economic Advancement Programme (FEAP)
In 2000, the federal
government merged the NACB, PBN and FEAP to form the Nigeria Agricultural
cooperative and Rural Development Bank Limited (NACRDB) to enhance the provision
of finance to the agricultural and cooperative sectors. It also created the National poverty
eradication programme (NAPEP) with the mandate to provide material and
equipment training.
Though these services have
made several impacts in the economy, their activities were short lived due to
the unsustainable nature of the programme.
1.2 STATEMENT OF THE PROBLEM
Microfinance has evolved as
an economic development approach intended to benefit low income businesses.
Most small and medium
businesses do not have access to funds, yet microfinance scheme is created to
meet sustained demand in the management of microfinance, and such problems are
identified as following:
- Some microfinance institutions target a segment of the
population that has no access to business opportunities.
- Poor management constraint of some microfinance scheme.
THE RELEVANCE OF MICROFINANCE COOPERATIVE ENTERPRISE DEVELOPMENT [A CASE STUDY OF IMO STATE COOPERATIVE FINANCE ASSOCIATION LIMITED (ISCFA)]
