IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 10 NO. 4 2025
DOI: 10.56201/ijefm.v10.no4.2025pg128.142

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Microfinance Banks and the Economic Growth of Nigeria 2010 – 2023

Linus Egwu Ele, Nwafor, Ifeanyi Nwankwo, Friday Nwome Mgbada

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Abstract

The study was to investigated the impact of microfinance banks on the economic growth of Nigeria. Other specific objective were to examine the effect of microfinance bank lending rate on the economic growth of Nigeria; to determine the effect of microfinance inflation rate on the economic growth of Nigeria; to evaluate the effect of micro finance exchange rate on the economic growth of Nigeria. The study adopted ex-post-facto research design. In collecting and collating data for the determination of effect between variables under study, secondary data was predominantly used. The methods of analysis used are descriptive statistics and regression analysis. The study shows that microfinance bank lending rate does have positive significant effect on economic growth in Nigeria. Also, microfinance inflation rate does have positive significant effect on economic growth in Nigeria. Micro finance exchange rate has significant positive impact on economic growth in Nigeria. Based on the findings thereof, the study concludes that microfinance banks have significant influence on economic growth of Nigeria. Based on the result the study recommended that microfinance institutions should channel very high proportion of their credits to the productive and real sectors of the economy for valuable impact of their operations on Nigeria’s economic growth. More attention be given to the issue of inflation and its dampening effect on the economy. Microfinance banks (MFBs) should be front-liners of ethical and professional conduct by ensuring that soft loans are given to credible and promising entrepreneurs.

keywords:

Economic growth, Exchange rate, Lending rate, Inflation rate, Micro finance

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