Assessment of the Impact of Nonfinancial Services of Microfinance Banks on the Growth of Informal Economy in Jos Metropolis Plateau State, Nigeria (Published)
The main objective of this study is to examine the impact of nonfinancial services of microfinance banks on the growth of the informal economy in Jos Metropolis Plateau State, Nigeria. Elsewhere, empirical evidence has shown that nonfinancial services of microfinance bank are a perquisite to enhancing the growth of small-scale business enterprises and by extension the growth of informal economy. In the Nigerian context particularly, Jos Metropolis of Plateau State the extent to which non-financial services of microfinance bank impact on the growth of informal economy is yet to be empirically examine. Thus, this study examine the impact of microfinance banks nonfinancial services in terms of health talk, advisory services and financial literacy on the growth of the informal economy in Jos Metropolis Plateau State, Nigeria. Descriptive survey and exploratory research design was employed. Primary data sourced on the subject matter were analyzed with series of econometric approach ranges from multivariate, discriminant and pair sample t-test technique. Findings of this study reveal that all the explanatory variables namely; health talk (HET), advisory services (ADS) and financial literacy (FNL) has a statistically significant impact on dependent variables (growth of informal economy) which comprises income level (YLA) and business expansion. Also, findings of this study show that the difference between the means before and after participated in nonfinancial services of microfinance bank is extreme enough that it is very unlikely to have occurred merely due to chance. Based on the findings of this study, the following recommendations are suggested. That monetary authority and stakeholders of microfinance bank should formulate a policy that will ensure that management of microfinance bank frequently engaged in nonfinancial services before and after put forward financial services. This can be achieving through monitoring and reporting the activities of microfinance bank in relation to nonfinancial services. Also, management of microfinance banks without prejudice should ensure that customers’ participation in nonfinancial services program especially health talk is a requirement or perquisites for financial services of microfinance bank.