Department of Urban and Regional Planning, School of Environmental Studies, Lagos State Polytechnic, Ikorodu

Abstract

This study examines the relationship between microfinance Banks and the
financing of Small Scale Enterprises in the Lokongoma District of Kogi State
using descriptive research design. The aim is to ascertain the extent to which
microfinance banks have discharged their responsibilities of financing small
scale enterprises in Nigeria. The instrument for data collection is structured
questionnaire. Twenty Small Scale Enterprises and five Microfinance Institutions were randomly and purposively selected for the study. The study reveals among others that the beneficiaries from the products of microfinance banks enjoyed increase in income, equipment, creation of employment, and improvement in standard of living. However, it is also revealed that the major problem confronting Microfinance Institutions is default in payment of loans. The study therefore recommends among others that MFIs should endeavour to give out loans to Small Scale Enterprises so that the purpose of their establishment will not be defeated without playing down on sagacious and subtle measures that will enhance prompt recovery of the loans. Also, for enhanced performance, the government should provide an enabling environment, as well as monitoring the MFIs that were primarily established for credit delivery to small scale enterprises in Nigeria.