Effect Of Micro Finance Service On Saving Investment And Output In Abia State Of Nigeria

  • RO Mejeha
  • OR Iheke
  • G Afonne


This study investigated the effect of financial service (loans) and savings facilities delivery) 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 distribution and multiple regression analysis. The results suggest that access to microfinance services has significant positive effects on investment and output. The effect of micro finance service 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.

Keywords: Microfinance, Savings, Investment and Output

Journal of Agriculture and Food Sciences Vol. 5 (1) 2007: pp. 81-92

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eISSN: 1597-1074