The importance of finance in any economy, developed or developing cannot be over stated. It is the determinant of the level of economic activities in the society, the life wire and necessary ingredient that determine the success of failure of economic undertakings. Lack of finance leads to economic frustration and retards growth (Andreder, 1973).
The problem of lack of finance is particularly noticeable in the rural agricultural communities and amongst micro and small-scale enterprises.
This is because the rural areas are largely embanked and even in urban centers, the micro and small scale enterprises have limited access to bank credit facilities, on account of their of their often over-stressed inability to articulate document lending proposals backed up with acceptable collateral securities given that preponderance of Nigeria population who live in the rural agricultural
Communities and who engage I micro small scale business in urban centers, live blow poverty line (Akanji 2001). Nigeria cannot achieve the desired economic Transformation unless effective strategies are put in place to economically empower those at the lowest running of nations socio0economics ladder. It is in the light of this imperative that Nigerian government over the years have made efforts to create access of the active poor to financial resources through micro financing. An overview of past and present micro finance institution will be taken in the next section followed by a lighlight on the new micro finance policy, regulatory and supervisory frame work. The meaning of economic development will be explored. This is to be followed by an examination of economic development profentials of micro finance institution.
Conclusion will be draw on issues discussed and recommendation made.
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