The Role Of Microfinance Banks In The Alleviation Of Poverty In Nigeria
[A Case Study of Oha Microfinance Bank Ogui Road Branch, Enugu State]

1.3 - OBJECTIVES OF THE STUDY

The broad objective of this study is to find out the role of microfinance banks as a palliative in the alleviation of poverty in Nigeria. They are as follows:

1. To find out the rate at which rural dwellers deposit their money in microfinance banks rather than putting it under pillows.

2. To find the contribution of government in alleviation of poverty through the establishment of microfinance banks.

3. To find out the rate at which rural dwellers are able to repay their loans.

1.4 : RESEARCH HYPOTHESIS

The following hypotheses have been developed around which this research would revolve: 

H0: The rate at which rural dwellers deposit money in microfinance bank is low than they keep under their pillows.

H1: The rate at which rural dwellers deposit money in microfinance banks is high than they keep under their pillows.

H0: The government has not assisted microfinance meet the needs of rural dwellers and communities.

H1: The government has assisted microfinance meet the needs of rural dwellers and communities

H0: Microfinance borrowers react negatively towards loan repayment. H1: Microfinance borrowers react positively towards loan repayment.

1.5 : RESEARCH QUESTIONS

1. What is the rate at which rural dwellers deposit their money in microfinance banks rather than putting it under their pillow?

2. What is the contribution of government in alleviation of poverty through the establishment of microfinance banks in Nigeria?

3. Why do most Microfinance borrowers react negatively towards loan repayment?

1.6 :  SIGNIFICANCE OF THE STUDY

This study will benefit the following groups:

a. Government; The findings of this study will be useful to government in that it will help them to know the importance of 

MFI thereby knowing ways of improving the quality of their services. The result of the study will also bring out the areas that need improvement and make suggestions for improving on them.

b. Owners; It will also be useful to those planning to open Microfinance banks to know the usefulness of microfinance banks as catalyst or stimulus for poverty alleviation in rural settings as way of developing rural banking.

c. Scholars; Students also will find it very useful in some research work on project issues by boosting their knowledge about microfinance banks in the alleviation of poverty. Those who need referencing material materials on role of micro financing in alleviating poverty will find this study useful.

1.7.  - SCOPE OF THE STUDY

The research on the role of microfinance banks in poverty alleviation which requires a thorough analysis of the Oha Microfinance Bank, Ogui Road branch in Enugu State.

1.8 : LIMITATIONS OF THE STUDY

In the course of this research work, the researcher encountered different problems such as:

1. Inadequate finance: As a student, financial difficulties limit the researcher from studying the activities of all banks and also limit 

the volume of data collection; e.g. the funds available will not be enough in transporting and facts findings.

2. Time constraint: There was no time to conduct an enormous research.

3. Inability to get access to some Microfinance banks to get more information about their records and some other useful information about the work also limit the research data collections.

4. Environmental constraint: The environment in which the research work was written restricted the researcher from going out and so the researcher was faced with the problems of how to reach out the field of research and coordinate activities as planned.