The Effects of Informal Financial Institutions on the Socio-Economic Development of Adikpo Town
Sambe, Ngutor; Korna, Johnmark M.; Abanyam, Noah Lumun

Abstract
This study was designed to examine the effects of Informal financial Institutions on socio-economic development of Adikpo town. Specific objectives were: to determine the effect of informal financial institutions on poverty reduction; to ascertain if informal financial institutions facilitate more access to credit facilities; and to ascertain whether informal financial institutions have affected the level of investment. The study randomly sampled 200 respondents as questionnaires were used to collect data. Chi-square was employed in the test of hypotheses using SPSS version 16.0. Dependency theory was used in analysing the study. Findings showed that Informal Financial Institutions were more effective in reducing poverty among members than non-members. Furthermore, the institutions guaranteed more access to credit than non-members and lastly, Informal Financial Institutions were effective in promoting investment among members as compared to non-members. It was therefore concluded that Informal Financial Institutions have been effective in promoting socio-economic development of the town. The study recommended for inclusion of the institutions in poverty reduction programmes of government, utilisation of the institutions in accessibility of credit by the masses and initiation of programmes that will enhance the multiplication and growth of Informal financial Institutions.

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