Effect of Micro Finance Banks on Economic Development of Kaduna State, Nigeria

Abstract

A carefully planned and monitored micro-credit financing can serve as a veritable tool for economic development of any State or nation. The objective of this study is to assess the effect of Micro finance banks on economic development of Kaduna state, Nigeria. The study is a survey research and both primary and secondary data were used, and formulated hypotheses tested using Kendal coefficient of concordance. The findings of the study indicated that Micro-finance banks has significantly assisted in eradicating poverty in Kaduna State, Nigeria, also Micro-finance banks have significantly increase the income generation and productivity level of small and medium scales entrepreneurs in Kaduna State, Nigeria, thereby increasing economic development. The study among other things recommended that the management of the microfinance Banks in Kaduna State Nigeria should pay more attention to small and medium scales industries by encouraging them on their production as well as giving them adequate support so that their product can be recognized both locally and internationally, thereby eradicating poverty in the State. Also, appropriate promotional tools should be adopted by the management of the Microfinance banks in order to create more awareness to the grassroots dwellers and educate them on the benefit that they will derive from collecting loan from the Microfinance banks to enhance their income generation.