Microfinance Bank and Economic Growth Nexus: Evidence from Nigeria

Mazeli; Edith Nkiruka PhD; Prof. Stanley Arinze Anah; Madubuike Kenneth O. PhD; Ejinkonye; Remigius Chinwoke PhD

doi:10.56201/wjfir.v10.no5.2026.pg1.9

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Microfinance Bank and Economic Growth Nexus: Evidence from Nigeria

Mazeli, Edith Nkiruka PhD, Prof. Stanley Arinze Anah, Madubuike Kenneth O. PhD, Ejinkonye, Remigius Chinwoke PhD

Abstract

This work assessed the microfinance bank and economic growth nexus in Nigeria. Statement of problem: There have been emphasis on micro, small and medium enterprises in recent times as catalysts for growth to be driven by the microfinance banks. Microfinance banks in promoting and enhancing economic growth in Nigerian economy is faced with stiff difficulties like repayment problems, poor financing, high running costs amongst others. Methodology: The ex-post facto research design was adopted. The secondary data for the study was obtained from CBN statistical bulletin and analyzed using regression technique. The study was anchored on the Harrod-Domar growth theory. The specific objectives were to assess the effect of: number of microfinance banks ; microfinance bank loans and microfinance bank assets on gross domestic product in Nigeria. Findings: NOMFB had a negative and non-significant effect on gross domestic product; MFBLO had a positive and significant effect on gross domestic product while MFBASS had positive but non- significant effect on gross domestic product in Nigeria for the period reviewed. The probability (f-statistic) and adjusted R2 values were 0.003712 and 99% respectively while the Durbin- Watson value was 2.471634. Recommendations: The study recommended amongst others that the Central Bank of Nigeria should continually ensure that microfinance banks keep expanding and lending to the productive sectors of the economy for continued economic growth of Nigeria. Key words: Number of microfinance banks, Microfinance bank loans, Microfinance bank assets, Gross domestic product.

Keywords

Number of microfinance banksMicrofinance bank loansMicrofinance bank assetsGross domestic product.

References

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Microfinance Bank and Economic Growth Nexus: Evidence from Nigeria

Abstract

Keywords

References

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