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1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study




3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis



4.1 Introductions

4.2 Data analysis


5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation




This study is on impact of microfinance banks in stimulating banking habit of rural dwellers in Nigeria. The total population for the study is 200 staff of royal trust microfinance bank, Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up managers, customer care officers, marketers and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies











  • Background of the study

The Central Bank of Nigeria in December 2005 published regulatory and supervisory framework for the regulation of microfinance banks and mandated all community banks operating in the country to submit to it plans for conversion latest by September 30th, 2006 and to finally convert latest 31stDecember, 2007. The practice of microfinance banking in Nigeria is culturally rooted and dated bank to several centuries. The traditional microfinance institution provides access to credit for the rural and urban dwellers and low income earners. They are mainly of the informal Self Help Groups (SHGs) or Rotating Saving and Credit Associations (RSCA) types. Other providers of microfinance services includes saving collector and cooperative societies. In order to enhance the flow of the financial services to the Nigeria rural areas, Government has in the past initiated a series of publicity financed micro credit progarmmes and policies targeted at the poor. Before now, commercial banks traditionally lend to medium and large enterprises which are judged to be credit-worthy. They avoided doing business with the poor and their micro enterprises because the associated costs and risks are considered relatively high (Anyanwu, 2004). Today, many rural communities in Nigeria have one or more of this microfinance bank, and they have had far more reaching implications for the entire socioeconomic development of rural communities in Nigeria. It is worthwhile to note that lack of funds often caused the collapse of small businesses and the extinction of ingenious ideas before they could be translated into reality. It is now widely believed that following government’s policies on rural development, rural investment will be given a boost via microfinance banking as all efforts of our hardworking, but under-privileged masses would come to an end without this veritable institution. However, the idea behind microfinance banking is to encourage banking habits through among dwellers and their commitment to modern financial institutions within the rural environment. Thus, microfinance banking is supposed to be the machineries for financial and economic emancipation as its growth is connected with the community in which it serves. The latent capacity of the poor for entrepreneurial advancement would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self reliant, increase employment opportunities, enhance household income and create wealth in the rural areas (Iweala, 2005).


This research work will basically treat the impact of microfinance banks in stimulating the banking habit of the rural dwellers in Nigeria. Furthermore to look into the features of microfinance banking and how it stimulates the banking habit of the rural dwellers in Nigeria. The effect of not addressing this situation appropriately would further accentuate poverty and slow down growth and development in this area. The Central Bank microfinance policy of 2005 stated that the establishment of microfinance banks has become imperative. While the above problems are observable, the effects of microfinance banks on rural dwellers in Nigeria remain an empirical one. The main problems addressed in this study are: have microfinance banks mobilized savings for intermediation in Nigeria? Have microfinance banks provided timely and affordable banking services to the economically active poor in Nigeria? And have microfinance banks provided employment opportunities to the rural dwellers in Nigeria?



The objectives of the study are;

  1. To ascertain the impact of microfinance banks on the banking habit of people in Nigeria
  2. To ascertain whether Microfinance banking enhance the development of banking habit
  3. find out whether the microfinance banks are providing timely and affordable banking services to the economically active poor in Nigeria

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0:     there is no impact of microfinance banks on the banking habit of people in Nigeria

H1:   there is impact of microfinance banks on the banking habit of people in Nigeria

H02:   Microfinance banking do not enhance the development of banking habit

H2:   Microfinance banking do enhance the development of banking habit



The study has revealed the importance and the impact of microfinance banks on the banking habit of rural dwellers, most especially the contributions of Royal Trust Microfinance banks on the development of the banking habits of people in its environs.

The result of the study will be useful to the following:

  1. Government: The result will be useful to the three tiers of government as well as the arms of government in formulating their respective policies as touching the monetary and economic policies.   
  2. Communities: Local communities (towns and villages) will find the result of the project useful in the area of determination and creation of small scale community based employment opportunities for the dwellers.
  3. Individuals and Corporate Bodies: This set of people will find the result of the project useful in the area of mobilization of credit for smooth running of their businesses in the case of corporate bodies and in the area of building savings for self actualization.

This research is centered on the impact of microfinance banks in simulating the banking habit of rural dwellers in Nigeria. Royal Trust Microfinance Bank is used as a case study for the purpose of the research work. This research wok has suffered some set back by ways of saving access to some vital information and documents. Also on the case of the research work, there is a financial problem faced before the completion of this research work. The researcher encounters some constrain which limited the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
  3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities


MICROFINANCE BANK:  the provision of microloans to poor entrepreneurs and small businesses lacking access to banking and related

STIMULATION: Stimulation is the encouragement of development or the cause of activity generally. For example, “The press provides stimulation of political discourse.

BANK HABIT: It’s all about everyday behaviors and habits focused on fueling our four dimensions of energy—proven to help us become


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study


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