An Empirical Investigation of the Impact of Microfinance Bank Loans and Advances on Nigeria’s Industrial Output
Abstract
The study empirically investigated the impact of microfinance bank loans and advances on industrial output in Nigeria. It made use of annual secondary data sourced from CBN statistical bulletin 2008 and 2014. The multiple regression model was adopted for the study while the Ordinary Least Squares (OLS) estimation technique was employed in the analysis via STATA 11.0 econometric software. The diagnostic test result showed that all the variables were stationary after first differencing. The regression analysis result showed that microfinance bank loans and advances had significant impact on industrial output in Nigeria as 1% increase in microfinance bank loana and advances brought about 0.25% increase in industrial output during the period under review. It also, indicated that government expenditure on health had significant impact on industrial output in Nigeria as 1% increase in microfinance bank loans and advances led to 0.51% increase in industrial output during the period under review. In the light of these findings, the study recommends that the Nigerian government should enforce policies that will reduce the cost of borrowing from microfinance banks and address institutional and infrastructural challenges facing these microfinance banks in Nigeria.References
CBN (2008). Central Bank of Nigeria Statistical Bulletin, Abuja.
CBN (2005). Justification for establishment of microfinance banks. Microfinance Policy, Regulatory And Supervisory Framework For Nigeria.
CBN (2014). Central Bank of Nigeria Statistical Bulletin, Abuja.
International Labour Organisation (2002). Women and Men in the Informal Economy: A Statistical Picture, Employment sector, ILO. Geneva.
Lammermann,S. (2010). Time for action : Responding to Poverty, Social Exclusion in Europe and beyond, European Social Watch Report
Maksudova, N. (2010). Contribution of Microfinance to Financial Sector Development and Growth. Centre for Economic Research and Graduate Education, Charles University, Prague and The Economic Institute of the Academy of Sciences of the Czech Republic.1-20.
Musa, G. G. and Aisha.U (2012). Financing Small and Medium Enterprises: A challenge for Entrepreneurial Development in Gombe State. Asian Journal Of Business and Management Science. 2(9), 17-23.
Nudamatiya, A. B., Giroh, D. Y., & Shehu, J. (2010). Analysis of Microfinance Impact on Poverty Reduction in Adamawa State, Nigeria. Journal of Agriculture and Social Science , 6, 91-95.
Ogujiuba.K Fadila .J and Stiegler. N (2013). Challenges of Microfinance access in Nigeria: Implications for Entrepreneurship Development: Mediterranean Journal of social sciences. 4(6), 611 – 618.
Ojo, O. (2009). Impact of Micro Finance On Entrepreneurial Development: The case of Nigeria. The International Conference on Economics and Administration. University of Bucharest, Romania.
Okpara, G. (2010). Microfinance banks and poverty alleviation in Nigeria.
Journal of Sustainable Development for Africa. , 12, 177-191.
Olakojo, S. & Olanipekun, D. (2011). Microfinance Banking and Sectoral Growth: An Empirical Lesson from Nigeria. Journal of Economic Theory , Vol. 5(2), 50-54.
CBN (2005). Justification for establishment of microfinance banks. Microfinance Policy, Regulatory And Supervisory Framework For Nigeria.
CBN (2014). Central Bank of Nigeria Statistical Bulletin, Abuja.
International Labour Organisation (2002). Women and Men in the Informal Economy: A Statistical Picture, Employment sector, ILO. Geneva.
Lammermann,S. (2010). Time for action : Responding to Poverty, Social Exclusion in Europe and beyond, European Social Watch Report
Maksudova, N. (2010). Contribution of Microfinance to Financial Sector Development and Growth. Centre for Economic Research and Graduate Education, Charles University, Prague and The Economic Institute of the Academy of Sciences of the Czech Republic.1-20.
Musa, G. G. and Aisha.U (2012). Financing Small and Medium Enterprises: A challenge for Entrepreneurial Development in Gombe State. Asian Journal Of Business and Management Science. 2(9), 17-23.
Nudamatiya, A. B., Giroh, D. Y., & Shehu, J. (2010). Analysis of Microfinance Impact on Poverty Reduction in Adamawa State, Nigeria. Journal of Agriculture and Social Science , 6, 91-95.
Ogujiuba.K Fadila .J and Stiegler. N (2013). Challenges of Microfinance access in Nigeria: Implications for Entrepreneurship Development: Mediterranean Journal of social sciences. 4(6), 611 – 618.
Ojo, O. (2009). Impact of Micro Finance On Entrepreneurial Development: The case of Nigeria. The International Conference on Economics and Administration. University of Bucharest, Romania.
Okpara, G. (2010). Microfinance banks and poverty alleviation in Nigeria.
Journal of Sustainable Development for Africa. , 12, 177-191.
Olakojo, S. & Olanipekun, D. (2011). Microfinance Banking and Sectoral Growth: An Empirical Lesson from Nigeria. Journal of Economic Theory , Vol. 5(2), 50-54.
Published
2017-02-16
How to Cite
ONWUBU, Nancy Chinemerem; OKORIE, George Chisom.
An Empirical Investigation of the Impact of Microfinance Bank Loans and Advances on Nigeria’s Industrial Output.
GOUNI Journal of Management and Social Sciences, [S.l.], v. 4, n. 2, p. 225-230, feb. 2017.
ISSN 2550-7265. Available at: <http://journal.gouni.edu.ng/index.php/fmss/article/view/26>. Date accessed: 11 may 2018.
Issue
Section
Articles
Keywords
Banks, Microfinance Bank; Loan; Industrial Output
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