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Assessing the Impact of Nirsal Microfinance Bank Facility on Small and Medium Enterprises in Lokoja Local Government Area Kogi State, Nigeria

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  • Iortyer Aondover Dominic

    (Department of Economics, Federal University Lokoja)

  • Martins Abdul Onuh

    (Department of Economics, Federal University Lokoja)

Abstract

The study determined the impact of NIRSAL Microfinance Bank’s facility on SMEs growth in Lokoja LGA. The it adopted a survey research design using primary data. The population of the study consists of 250 SMEs that have accessed the NIRSAL Microfinance Bank facility in Lokoja LGA. The study used a sample size of 154 SMEs which was drawn using the Taro Yamane formula. Simple random sampling was engaged to draw respondents. Questionnaires were administered to the SMEs, while interviews were conducted with selected stakeholders. Data generated were analyzed with the aid of tables, frequencies, and percentages, including pie charts bar charts, chi-square and correlation analysis. Findings of the study revealed that the bank’s facilities have considerably enhanced the growth of SMEs in terms of increased income creation, employment generation, and expansions but with some challenges in assessing the facility; such as application process difficulties and delay in funds disbursement, as revealed by findings. Consequently, recommendations were made, which include: streamlining the application process by creating an online portal and offering step-by-step guidance, addressing fund disbursement delays through automation and clear timelines, improving customer service with training and feedback mechanisms, and tailoring financial offerings to different SME development stages to enhance growth and increase job creation in Lokoja local government area.

Suggested Citation

  • Iortyer Aondover Dominic & Martins Abdul Onuh, 2024. "Assessing the Impact of Nirsal Microfinance Bank Facility on Small and Medium Enterprises in Lokoja Local Government Area Kogi State, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 2848-2863, August.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:8:p:2848-2863
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    References listed on IDEAS

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    1. Oluyemi Theophilus Adeosun & Ayodele Ibrahim Shittu, 2021. "Small–medium enterprise formation and Nigerian economic growth," Review of Economics and Political Science, Emerald Group Publishing Limited, vol. 7(4), pages 286-301, July.
    2. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
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