Problems of Microcredit Among Microenterprises in Nigeria

Abstract

This study was designed to assess the problems of microcredit among microenterprises in Nigeria and make recommendations for remedial strategies. Microcredit refers to small loans made available to small producers otherwise known as the active poor to enable them start new productive activities, grow or sustain existing ones. The study was delimited to Aba which has the highest concentration of microenterprises in the South East Zone of Nigeria. The survey research design was used, and the questionnaire and face-to-face interview methods were used for data collection. Data were analyzed using tables, frequencies, percentages and Z-test statistics. It was found that problems of microcredit have significant effects on the performance of microenterprises in Nigeria. Ten recommendations were made based on the findings of this study.

Keywords: Microcredit, Microenterprises, Micro-entrepreneurs, UNDP, MfB, CBN, Peru, Soft loans, FEAP, MSMEs, Vulcanizers, Venture Capitalist

JEL Classification: M10, M12