International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

INFORMAL MICROFINANCE AND ECONOMIC ACTIVITIES OF RURAL DWELLERS IN KWARA SOUTH SENATORIAL DISTRICT OF NIGERIA
IJAIYA, Muftau Adeniyi

Abstract
Rural areas, like urban areas have increasing demand for credit because such credit reduces the impact of seasonality on incomes. However, formal financial institutions have maintained low presence in the rural areas. This has affected the rural dwellers’ access to deposit savings and credits that can improve their economic activities. This study examined the influence of informal microfinance on economic activities of rural dwellers in the  rural areas of Kwara South Senatorial District. Using a multiple regression analysis, six hundred (600) questionnaire was administered on members of informal microfinance institution in the study area, the study found that fund provided as credit facilities for transaction purposes, funds for housing and combating diseases have significant influence on the economic activities of the rural areas. The study recommends group savings and group lending in order to increase savings and credits to the rural dwellers. Government should also provide improved infrastructural facilities that would enable rural dwellers have more access to their economic activities

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