INFLUENCE OF MICRO-FINANCE BANK ON THE NIGERIAN ECONOMY

Abstract

This study examined the influence of microfinance bank (MBs) on the Nigerian economy from 2000 to 2022. Specifically, the study examined the influence of MLOA, MDEP, MINV and MAST on RGDP. Data for the study was sourced from CBN statistical bulletin and annual report of MBs, and analyzed using descriptive statistics, unit root test, cointegration test, and granger causality test. Result emanating from the study revealed that MLOA, MINV, and MDEP have positive and insignificant effect on RGDP while MAST has direct yet significant influence on RGDP. Hence, while, improving investment and other forms of wealth accumulation should be the long-term objective, we advise microfinance firms to provide loans in the short term to boost consumption