• Background of the Study

The practice of micro-finance in Nigeria is culturally rooted and dated backs several centuries. The traditional micro-finance institutions provide access to credit for the rural and urban low income earners.

In order to enhance the flow of financial services to Nigeria, rural areas, government has in the past. Initiated a series targeted at the poor. Notable among such programmes were the rural banking programmes, sectoral allocation of credits at concessionary interest rate and the Agricultural Credits Guarantee Scheme (ACGS). Other institutional arrangements were Nigerian Agricultural Insurance Corporation, the People Bank of Nigeria (PBN), the Community Banks (CBS), the Nigerian Agricultural and Co-operative Bank Limited (NACB), the National Directorate of Employment (NDE) and the Family Economic Advancement Programme (FEAP). In 2000, Government neged the NACB with PBN and FEAP to form the Nigerian Agricultural co-operative and Rural Development Bank Limited (NACRDB) to enhance finance to the agricultural sector, it also created the National Poverty Eradication Programme (NPEP) with the mandate of providing financial services to alleviate poverty.

Micro finance service, have adopted traditional supply subsidized credit approach mainly directed to the Agricultural sector and non form activities. And also non-government organization have employed in Nigeria to provide micro finance service to this research examine the impacts such services on the economy.

It is generally observed that Ikpe Annang Micro finance is one of the micro finance banks was incorporated during the last consolidation exercise. Ikpe Annang Micro-finance bank (formally called Ikpe Annang community Bank) was incorporated in 1994 and was also commend Banking license by the National Board for community Bank (NBCB) Ikpe Annang Micro finance bank also have their company organization chart. Which the managing director is the head of management, he is supported by other four (4) functional heads namely, head administration, head operation, head credit etc.

And head finance the directors/managers of the bank from 2012 – 2015 were – S. T. Umoh/C/Muu and Arc. Nyah A. D. Mfoniso Akpan, Abraham, (M) C. U. Essien, Mrs. Theresa F. U. Etuk, P. C. Iboroh Fellow, by the incorporation P. F. the bank, the Bank prospectus is to expand with a good Network of Cash Point in all the state.


  • Statement of the Problem

Akwa Ibom State is statistically rated as the 7th poorest state in Nigeria. In 1990, poverty affected 67% of the population, poverty is therefore widespread and deep – rooted (endemic) because of lack of opportunities for sustainable, it was against this backdrop that the government of the state instituted the various micro-credit/micro-finance schemes in other to reduce the effect of poverty in the land, enhance the productive capacity of the people and engender economic growth. This in turn will raise the living standard of the people.

However, economic growth is unlikely to reduce the gender inequalities of the society unless the growth process is accompanied by creative economic and social programmes that address these inequalities. Also, is the problem of inadequate funding of programmes, administrative overlap, corruption and general inefficiency.

This research will evaluate empirically the role of micro-finance in economic development of Akwa Ibom State.


  • Objectives of the Study
  • To identify the achievements of micro finance banks in Akwa Ibom State.
  • To assess the roles of micro finances an instrument for economic empowerment in Akwa Ibom State.
  • To examine the significance and objective of micro finance bank in Akwa Ibom State.
  • To identify the challenges of micro finance banks in Akwa Ibom State.
  • To assess the various prospects of micro finance in Akwa Ibom State.


  • Research Questions
  1. What are the significance and objectives of micro finance banks in the Akwa Ibom State?
  2. What are the Achievements of Micro-finance banks in Akwa Ibom State?
  3. What are the challenges of micro finance banks in Akwa Ibom State?
  4. What role has micro finance played as an instrument for economic development in the State?
  5. What are the prospects of micro finance banks in Akwa Ibom State?


  • Significance of the Study

This research work will provide typical information to the government on the micro finance as an instrument for economic empowerment in Nigeria.

It will be useful to government and its agencies in appraising the effectiveness and the attainment of its goals. Above all, it will provide a useful guide to those who may be interested in further research undertakings in this regard and also to the researcher.

  • Scope/Limitations of the Study

The study centered on micro finance, this research work could have been carried out extensively but for financial constants, time factor and attitude of respondents.