Informal Sector, Micro Credit Delivery and Entrepreneurial Development in Nigeria

Indian Journal of Economics Vol. LXXXIII No 330 January 2003

Posted: 1 Nov 2016

See all articles by Ismail Soile

Ismail Soile

University of Lagos; University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)

Rufus Ajisafe

Obafemi Awolowo University - Department of Economics

Date Written: January 11, 2003

Abstract

The informal sector particularly the international donor agencies as well as international and local NGOs are offering considerable assistance in developing countries to ensure that the less privileged individual who have no link with the formal financial system are not completely left behind in the developmental process. In this regard, this paper examines the role of selected NGOs engaged in micro credit delivery across the country. Interestingly, the results show that the 'membership and outreach' of these institutions has been expanding greatly. However, the overall effective cost of credit from these institutions is too high to encourage entrepreneurs. While the study advice on the need to encourage the establishment of more of these institutions, it cautioned that these institutions should demonstrate greater willingness to cope with very narrow profit margin. This and the government ability to achieve lower inflation rate can bring about a reduction in the cost of credit from these informal sources.

Keywords: informal sector, micro credit, NGOs, enterpreneural development

Suggested Citation

Soile, Ismail and Ajisafe, Rufus, Informal Sector, Micro Credit Delivery and Entrepreneurial Development in Nigeria (January 11, 2003). Indian Journal of Economics Vol. LXXXIII No 330 January 2003. Available at SSRN: https://ssrn.com/abstract=2621018

Ismail Soile (Contact Author)

University of Lagos ( email )

Akoka
PMB 4491
Akoka, Lagos State 00234
Nigeria
+2348076184184 (Phone)

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP) ( email )

Nethergate
Dundee, Scotland DD1 4HN
United Kingdom

Rufus Ajisafe

Obafemi Awolowo University - Department of Economics ( email )

Ile-Ife
Nigeria

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