An Evaluation Of The Roles Of Micro Finance Banks As An Alternative to Poverty Alleviation Programme In Nigeria (A Case Study Of Avram Micro Finance Bank, Owerri Imo State)

ABSTRACT

The economy today is faced with challenges that tend to affect productivity and performance of the economic section of the country. Micro finance bank was set up be the government in order to solve some of the vital problem affecting the growth and development of the country. The central bank of Nigeria (CBN) as part of its reforms agenda; initiated micro finance bank as a policy aimed at bringing credit to the door step as a pollcy aimed at bringing credit to the door step of the poor who do not have access under the conventional financial system. The introduction of micro finance bank in the economy serves as an instrument of socioeconomic development and rural transformation cannot be overemphasized. It is also a scheme to enhance the productivity performance of the country (Oyejide, 2008). Poverty is said to be broad, pervasive and multinational developing countries such as Nigeria. It connotes living below a certain minimum level of income that is acceptable by a particular society such as ours. The Nigerian human development report 1996 reported that 60% of the countries suffer from lack of ncome in order to achieve objective minimum of goods and services which predicted on helping the poor entrepreneur to realize their dreams, thereby contributing to the economic growth an development of the nations. The new micro finance banks were established to provide funding and financial advisory services to small scale entrepreneurs, manufacturers, supplies and other engaged in other form of economic activities, whose business are often stunted as a result of in adequate funding. Over time, such customers would be entitled to loans, which are strictly monitored to ensure that there are no abuses. Another main feature of micro finance banking business is the loading of cash flow rather than collateral (Adamola 2007).