MICRO FINANCE BANK AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT: This study was carried out to examine micro finance bank and economic growth in Nigeria with special reference to LAPO Ondo state. Specifically, the study investigate the impact of micro finance bank and economic growth in Nigeria. The study also will explicate in detail ways in which micro finance banks can contribute in developing rural areas and improving the life of the poor people. Lastly, the study will investigate the ways microfinance bank can contribute in building entrepreneurship within the country. The study employed the survey descriptive research design. A total of 30 responses were validated from the survey.  From the responses obtained and analyzed, the findings revealed that micro finance bank is relevant to the economic growth  and development in Nigeria at (β = 0.887, R2 = 0.936, P = .000) since the number of entrepreneurs that uses their services is high. Also, the study shows that microfinance institution does contribute to entrepreneurial productivity, at (β = 0.896, R2 = 0.952, P = .000). The study thereby recommend that long run goal should then be to improve investment and other capital accumulation. It is these channels of participation in the economy that will ensure optimal use of the microfinance resources in the country with the target of achieving sustainable growth. Thus, boosting consumption and increasing income streams should be the main focus of microfinance banks so as to address short term challenges.  Also,  another area where microfinance banks can improve economic growth is when loans are targeted at business expansion.