Challenges of Microfinance Banking in Nigeria - 1603 Words

CHALLENGES OF MICROFINANCE BANKING IN NIGERIA-1 Nigerians, like many other Africans are generally known as their brother’s keepers in view of the extended family system. But when truly analyzed, there is a possibility that this may not be so? Perhaps a hypothetical deep may reveal that not up to 10% of Nigerians would invest in ventures or people that would yield them nothing in return and here I mean, â€Å"Returns in the short run or in the immediate†. The returns may be financial, emotional, spiritual, relational or social. But fact is, there is something the investors expect in return when they give and these could include being worshipped as personal heroes, fear of harassments, fear of being harmed, for family ties, religious ties, being†¦show more content†¦I hear and read the Governor of CBN assuring the public of safety of the Consolidated Banks. But the Similar truths and campaigns should also be carried for the microfinance industry Lack of trust by the poor themselves who believe that the microfinance banks are just like the unregulated community banks and unregulated finance houses. Going by the antecedents of the banking industry in general, no one would blame the people for lack of trust. Only effective and far-reaching campaigns and exhibited trust in the microfinance banks by the government and the regulators can achieve this desirable confidence. An Uneducated Population: A critical ill of the populace in Nigeria is the bottom, bottom level of poor education of the people. A country where less than 10% of the populace pays attention to the print media, less than 20% listen or watch educative audio-visuals is a great challenge to information dissemination. Incidentally, the literally â€Å"very† educated people do not read handbills and communicative documents that deal with those things like microfinance banking since they have no interest in such activities. A survey of how many people would read this documentary would shock you even if the Guardian Newspapers circulate it free to just the middle and upper classers. This attitude is worse with the targeted microfinanceShow MoreRelatedRole Of Microfinance Institutions ( Mfis )1476 Words   |  6 PagesMicrofinance institutions are playing an important role in the delivery of financial services to the poor. Increasingly, these MFIs are for-profit, limited liability companies, the ownership of which is in the hands of multiple shareholders. In most cases, shares are privately held (i.e., not publicly traded). Most such MFIs are licensed financial institutions finance companies and banks. Many are deposit takers. The microfinance industry has directed to change all that by building a financial marketRead MoreAbolition of Universal Banking in Nigeria - Implication for Nigerian Banks10849 Words   |  44 PagesBASEL III AND ABOLITION OF UNIVERSAL BANKING MODEL – IMPLICATION FOR NIGERIAN BANKS Introduction: In the aftermath of the economic recession which pulled down many global banks and exposed multiple weaknesses in regulation and banking structures, the Basel Committee on Banking Supervision agreed to new rules on the minimum level (capital ratio) and composite structure of Banks capital on the 12th of September, 2010. Broadly speaking, the new rules which are widely referred to as Basel III (and areRead MoreThe Financial System in Nigeria6376 Words   |  26 PagesThe Financial System in Nigeria: An Overview of Banking Sector Reforms The Financial System in Nigeria: An Overview of Banking Sector Reforms E. J. Ofanson (Ph.D)1 O. M. Aigbokhaevbolo (Ph.D)2 G. O. Enabulu3 Abstract The paper overviews the banking sector reforms within the framework of the Nigerian Financial System. A theoretical approach was adopted although empirical evidence was presented in some cases. It was clear that developments in the banking sub-sector of the Nigerian financial systemRead MoreAdoption of Information and Communication Technology (Ict) in the Banking Sector: Success or Failure?5916 Words   |  24 PagesADOPTION OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) IN THE BANKING SECTOR: SUCCESS OR FAILURE? Ukeh, Moses Ichongo Superlife Consulting, Makurdi 2013 Abstract Nigerian banking industry has become highly ICT-based and is reaping the benefits of technological revolution as evidenced by its application in most of its operations. The objective of this paper was to determine if the Nigerian banks have failed or succeeded in the adoption and use of ICT (see table 2.1). An evaluation ofRead MoreImpact of Microfinance awareness in Kenya12633 Words   |  51 PagesMICROFINANCE AWARENESS AND IMPACT IN KENYA: A CASE OF NAIROBI COUNTY Table of Contents CHAPTER ONE INTRODUCTION 1.1 Background of the Study The need for development that saw the Kenya develop several strategies and plans such as the vision 2030 and the millennium development goals has led to development of the finance sector. The need for financing of the development projects has developed microfinance institutions in the country. Microfinance has received a lot of attentionRead MoreRole of Micro Finance in Pakistan3889 Words   |  16 Pages200 B.C, which were started in India in shape of moneylenders, chit funds and merchant banks. Ireland and Germany are respectively second and third for starting micro financing activities to reduce poverty in 17th and 18th century respectively. Microfinance in Pakistan has been started in 1970s, government redirected credit was used as a development tool. SBFC, YIPS, SES, and YC were among the first schemes started by the FIs under the indirect political influence of Pakistan government to help un-employedRead MoreKey Constraints to Housing Development Finance in Nigeria.2347 Words   |  10 Pages Key Constraints to Housing Development Finance in Nigeria. A TERM PAPER DEPARTMENT OF ESTATE MANAGEMENT AND VALUATION SCHOOL OF ENVIRONMENTAL STUDIES; FEDERAL POLYTECHNIC, NASARAWA, NASARAWA STATE e-mail: fpnas@yahoo.com, Tel.: +234 – 047-66701, 66707 047 – 66238 (DL) JULY, 2012 BY UZOKWE, LAWRENCE CHIDI Department of Estate Management and Valuation School of Environmental Studies The Federal Polytechnic Nasarawa, Nasarawa State. Email: Uzokwe_Lawrence@Yahoo.Com, 08059128950 ABSTRACTRead MoreEffect of Consolidation on the Performance of Nigeria Banks9468 Words   |  38 PagesIntroduction Banking reforms have been an on going phenomenon around the world right from the 1980s, but it is more intensified in recent time because of the impact of globalisation which is precipitated by continuous integration of the world market and economies. Banking reforms involve several elements that are unique to each country based on historical, economic and institutional imperatives. In Nigeria, the reforms in the banking sector preceded against the backdrop of banking crisis due toRead MoreAn Assessment of the Impact of Corporate Social Responsibility on Nigerian Society: the Examples of Banking and Communication Industries18990 Words   |  76 PagesAvailable online http://www.universalresearchjournals.org/ujmbr Copyright  © 2012 Transnational Research Journals Full Length Research Paper An assessment of the impact of corporate social responsibility on Nigerian society: The examples of banking and communication industries Adeyanju, Olanrewaju David Department of Financial Studies Redeemer’s University, km 46, Lagos Ibadan Expressway Mowe, Ogun State E-mail: davfol@yahoo.com, Tel No.: 07037794073 Accepted 30 January, 2012 In the NigerianRead MoreThesis on Empower Women Through Micro Credit Programmes18140 Words   |  73 Pagesthe above statement, there is clearly an important role for microfinance to play in the ‘empowerment’ of women. However, there remains much debate over exactly what this role should look like, as well as over exactly what is meant by the concept of ‘women’s empowerment.’ Much of the debate centers on the perceived tradeoffs between women’s empowerment efforts and organizational financial sustainability. Many microfinance institutions (MFIs) struggle with if and how they should incorporate