Assessing the Services of Microfinance Banks on Financial Inclusion in Borno State, Nigeria

Abstract

Financial inclusion is a vital engine for economic development. In addition, development can only be achieved when citizens of a country are financially inclusive. The sound functioning of financial system empowers citizens economically and socially, which enables individuals to contribute to country’s economy development. Microfinance development is a pivotal instrument for economic empowerment to serve the rural and poor people. The paper seek to assess the services of microfinance banks on financial inclusion in Borno State, Nigeria. The study variables are micro-credit, micro-saving and microfinance training. Positivist research paradigm was adopted and quantitative research approach. The population are the customers of University of Maiduguri Microfinance Bank (4,688) Borno State. Data were collected via survey approach. The study used purposive sampling technique, with sample size of 357 respondents and regression was used for data analysis. The result shows that micro-credit and micro-saving are statistically significant at P-value 0.035, 0.000. Also, microfinance training is statistically significant at P-value 0.043. The study conclude that microfinance services: micro-credit, micro-saving and microfinance training are significant and positively influences financial inclusion in Borno State. The study recommended that the microfinance and policy makers should consider actively promoting and supporting microfinance banks branches and sound micro-credit, saving and training programs.