Micro Finance Banking and Socio Economic Wellbeing of the Rural People in Ikot Ekpene Senatorial District of Akwa Ibom State, Nigeria

Abstract

This research was concerned with examining Micro finance banking and socio economic wellbeing of the rural people of Ikot Ekpene Senatorial district of Akwa Ibom State, Nigeria. The survey research design was adopted for the study. Data were collected from 400 purposively selected respondents. A 24-itemed questionnaire and a key formant interview schedule were developed by the researcher and validated by the supervisor. The purposive sampling technique was used to select the population of study. Three hypotheses were drawn for the study based on the identified major variables, namely; administration of thrift credit, promotion of entrepreneurship and teaching financial literacy. Data was analysed using Pearson Product Moment Correlation Coefficient at 0.05 level of significance. The findings revealed that administration of thrift credit (through increased income and household food security), entrepreneurship promotion (in terms of self-employment), and teaching financial literacy have statistical significance effects on the socio economic wellbeing of rural people in Ikot Ekpene Senatorial District of Akwa Ibom State, Nigeria. The major conclusion was that Micro finance bank has a significant impact on rural socio economic wellbeing. Based on the findings, a number of recommendations were made, one of such was that Micro finance banks should be extended to other communities in the Senatorial District to enable them enjoy the socio economic wellbeing which Micro finance bank is proved to offer.