Authors : R.O. Mejeha , O.R. Iheke and G. Afonne
Abstract: This study investigated the effect of microfinance on saving, investment and output in Abia State of Nigeria. Data used for the study were collected from clients of the Nigeria Agricultural Cooperative and Rural Development Bank (NACRDB). Eighty loan beneficiaries of the bank were randomly selected and interviewed with structured questionnaire. Data collected were analysed using simple statistical tools such as the t-test statistic, percentages, frequency tables and multiple regression analysis. The results suggest that microfinance has significant positive effects on investment and output. The effect of micro finance on saving was positive but not significant. The result of the regression analysis showed that savings had significant positive effect on investment while the effect of interest payment on investment was negative and significant Based on the findings, we recommend that microfinance services should be expanded in the study area and that people should be encouraged to make more saving as to enhance their income.
R.O. Mejeha , O.R. Iheke and G. Afonne , 2007. Effect of Micro Finance Service on Savings, Investment and Output in Abia State of Nigeria . Pakistan Journal of Social Sciences, 4: 559-564.