Faculty: Social Sciences
Department: Economics


Maduka, O. D.
Okafor, S. O.


This study is an appraisal of microfinance banks in Anambra State since the formulation of Microfinance Policy, Regulatory and Supervisory Framework (MPRSF) in 2005. A plethora of studies exist on microfinance banks (MFBs) in Nigeria but none attempted its appraisal in line with the MPRSF policy objectives. This study appraisedthe MFBs in areas of employment generation, poverty alleviation, and women empowerment. It also interrogates the constraints to accessibility of MFBs services to households in Anambra State. This study adopts the financial intermediation theory as its theoretical framework and data were collected through survey questionnaire. Using the multistage sampling technique, a total of 500 questionnaire was distributed through the probability proportionate-to-size technique. Four hundred and ten copies of the distributed questionnaire were retrieved and analyzed using descriptive statistics (tables, pie chart, mean score, and percentile) and inferential statistics (ordinary least squares regression). Findings show that services of MFBs impact positively on poverty alleviation, women empowerment and employment generation except procurement services, business monitoring and consulting. Men patronize MFBs more than women and that the total assets, loans/credit as assessed by households have significantly increased since the formulation of MPRSF. The results also show that financial services like internet and mobile banking as well as high interest rate, short repayment period, competition with deposit money banks are constraints to the performance of MFBs. This study recommends that MFBs should acquire appropriate infrastructure on information technology to enhance their internet and mobile banking operations; improve their human capital efficiency in the area of non-financial services; and that the CBN, through its supervisory role, ensure that MFBs provide diversified microfinance services on a long-run sustainable basis to the economically active poor and low income group, thereby creating jobs and reducing poverty.