A Synthesis of Grameen Microfinance Model:
Date
2015
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Nigeria Deposit Insurance Corporation (NDIC),
Abstract
Introduction; Literature Review; Empirical Studies; Review of Grameen Microfinance Model; Microfinance in Nigeria; Lessons for Nigeria; Recommendations and Conclusion
Description
The study has attempted to provide some extant information on the purpose, development and operation of microfinance. Relevant studies on microfinance in Nigeria, the Grameen bank model and its operation were reviewed and examined thereby revealing the factors impeding the effectiveness of MFIs in Nigeria. The study further identified the success factors of the GB model and drew some useful lessons for Nigeria. The analysis had shown that microfinance can successfully empower the economically active poor and thus reduce poverty.
Furthermore it came to the fore that microfinance is a veritable financial inclusion strategy, as well as a poverty reduction tool with possible positive contribution to sustainable development in Nigeria. Based on the above we therefore conclude that microfinance has the potential to reduce poverty, close the gender gap in economic empowerment and facilitate economic development.
This potential can be adequately harnessed if the lessons drawn from the success of the 89 Grameen model as elucidated in this artcle incorporated into the on-going reform process in the sub-sector while situating them within the realities of our financial climate.