Thesis Abstract

<p> The aim of this study was to evaluate the Uga Microfinance Bank in Aguata L.G.A Anambra State. Three research questions were formulated and tested. The specific objectives are to determine a centralized location, comfortable spaces and good design in Microfinance Bank. The result was obtained using questionnaire method, which was carefully analyzed. The population is 364 in number, where random sampling method were used to obtain a sample size of 36 which represent 10% and 35 were returned. From the data collected, it was discovered that there is need for another location, functional spaces and re-designing of Uga Microfinance Bank. <br></p>

Thesis Overview

<p> </p><p><strong>1.2 &nbsp; &nbsp; BACKGROUND OF THE STUDY</strong></p><p>The history of micro financing can be traced back as long to the middle of the 1800s when the theorist Lysander Spooner was writing over the benefits from small credits to entrepreneurs and farmers as a way getting the people out of poverty. But it was at the end of World War II with Marshall Plan the concept had a big impact. The today use of the expression micro financing has it roots in the 1970s when organizations, such as Grameen Bank of Bangladesh with the microfinance pioneer Mohammad Yunus, where starting and shaping the modern industry of microfinancing (Wikipedia 2015).</p><p>In United States, microfinance institutions was developed in 1980s. They served low income and marginalized minority communities. By 2007, there were 500 microfinance organizations operating in the US with 200 lending capital (Wikipedia 2015).</p><p>In Africa the first credit union in Africa was established in Northern Ghana in 1955 by Canadian Catholic missionaries. However, susu, which is one of the micro finance schemes in Ghana, is thought to have originated from Nigeria and spread to Ghana in the early twentieth century (<a target="_blank" rel="nofollow" href="http://www.economicswebinstitute.org)">www.economicswebinstitute.org)</a>.</p><p>In Nigeria micro finance banking came into being in 2005 with the launching of the micro finance policy by the former CBN governor Professor Chukwuma Soludo. The policy was influenced by the globally acclaimed impact of microfinance in helping the economically active poor to exit the poverty threshold and thus leading to significant poverty reduction. Hence micro finance banking was introduced with the expectation that over time, it would in reducing poverty in the country (Ngutor Nyor, 2013).</p><p>In Anambra state, micro finance banking came into existence following the 2005 government policy which leads to the conversion of community banks to micro finance bank so many banks were given provisional approval while others were given final license (Chukwuma 2007).</p><p>In Uga micro finance bank came as a result of 2005 policy so Uga community bank was converted to Microfinance bank with provisional approval (Umunne, 2009).</p><p><strong>1.2 &nbsp; &nbsp; STATEMENT OF THE PROBLEMS</strong></p><p>Despite the importance of micro finance bank to the community, there has been complaint form both staff and customers regarding to</p><ol><li>The location</li><li>The design</li><li>Space</li></ol><p><strong>1.3 &nbsp; &nbsp; AIM AND OBJECTIVES</strong></p><p>The aim of this study is o evaluate the location design and space of Uga micro finance bank building.</p><p><strong>OBJECTIVES</strong></p><ol><li>To determine a suitable location for Uga micro finance bank building.</li><li>To re-design Uga micro finance bank building.</li></ol><p>3. &nbsp;To create comfortable spaces in Uga micro finance bank.</p><p><strong>1.4RESEARCH QUESTIONS</strong></p><p>i &nbsp; &nbsp; &nbsp; Is Uga micro finance bank properly located?</p><p>ii &nbsp; &nbsp; &nbsp; Does the design of Uga micro finance bank functional?</p><p>iii &nbsp; &nbsp; Does the spaces inside Uga micro finance bank comfortable ?</p><p><strong>1.5 &nbsp; &nbsp; SIGNIFICANCE OF THE STUDY</strong></p><p>The finding of this study will significantly contribute to the re-designing of Uga Microfinance bank.</p><p>The study will also provide a suitable location for easy access for staff and customers. The study will provide a comfortable and ventilated spaces in Uga microfinance bank</p><p><strong>1.6 &nbsp; &nbsp; SCOPE OF THE STUDY</strong></p><p>This study is made to evaluate the location, design and space of Uga microfinance bank. It covered only Uga micro finance bank not Akpo microfinance bank.</p><p><strong>1.7 &nbsp; &nbsp; LIMITATIONS OF THE STUDY</strong></p><ol><li>Poor attention was given to the researcher because the bank were having their annul supervision by the federal government.</li><li>Staff and customers list were not easily provided.</li><li>Most customers did not return their questionnaire.</li></ol><p><strong>CHAPTER TWO</strong></p><p><strong>2.1 &nbsp; &nbsp; LITERATURE REVIEW</strong></p><p>The related literature on microfinance bank will be discussed under the following sub-headings.</p><p>* &nbsp; &nbsp; &nbsp; Concept and definition of Microfinance bank</p><p>* &nbsp; &nbsp; &nbsp; Historical Development of Microfinance bank</p><p>* &nbsp; &nbsp; &nbsp; Microfinance bank in United state</p><p>* &nbsp; &nbsp; &nbsp; Microfinance bank in Africa</p><p>* &nbsp; &nbsp; &nbsp; Microfinance bank in Nigeria</p><p>* &nbsp; &nbsp; &nbsp; Microfinance bank in Uga</p><p><strong>2.2 &nbsp; &nbsp; CONCEPT AND DEFINITION OF MICRO FINANCE BANK</strong></p><p>The term “Microfinance bank” refers to the activity of the provision of financial services to clients who are excluded from the traditional financial system on account of their lower economic status (Nwanyanwu, 2011).</p><p>According to CBN (2004), Microfinance is a development tool used to create access for the economically active poor to financial services at a sustainably affordable price.</p><p><strong>2.3 &nbsp; &nbsp; HISTORICAL DEVELOPMENT OF MICROFINANCE BANK</strong></p><p>The beginning of the Microfinance bank movement are most closely associated with the economist Muhammed Yunus, who in the early 1970’s was a professor in Bangladesh. In the midst of a country-wide famine, he began making small loans to poor families in neighboring villages in an effort to break their cycle of poverty. The experiment was a surprising success, with Yunus receiving timely repayment and observing significant changes in the quality of life for his loan recipients. Unable to self-finance an expansion of his project, he sought governmental assistance, and the Grameen bank was born. In order to focus on the very poor, the bank only lent to households owing less than half-acre of land. Repayment rates remained high and the bank began to spread its operations to other regions of the country. In less than a decade, the bank was operating independently from its governmental founders and was advertising consistent repayment rates of about 98% (Keven Davis / IILJ, 2008)</p><p><strong>2.4 &nbsp; &nbsp; MICRO FINANCE BANK IN UNITED STATE</strong></p><p>In the late 1980s, Microfinance institutions developed in the United state. They served low-income and marginalized minority communities. By 2007, there were 500 Microfinance organizations operating in the US with 200 lending capital (Wikipedia, 2011).</p><p><strong>2.5 &nbsp; &nbsp; MICRO FINANCE BANK IN AFRICA</strong></p><p>Turning now to another world of microfinance, our journey back in history takes us to Nigeria to a microfinance revolution, centuries ago. The earliest evidence of financial institutions in Africa dates back to the 16th century to esusu, a rotating savings and credit association (ROSCA) among the Yoruba. As a form of social capital, the esusu as a financial self-help group was transported during the slave trade to the “Caribbean Islands (Bascom 1952:69), where both the institution and the term still exist today now carried by a new wave of migrants to major American cities (Siebel, 2000).</p><p><strong>2.6 &nbsp; &nbsp; MICROFINANCE BANK IN NIGERIA</strong></p><p>The launching of microfinance policy, regulation and supervisory framework guideline by the central bank Nigeria 2005, according to Asuquo (2005:16) was the emergence of large number of private-sector initiated microfinance banks (MFBs) across the country, either through converting existing community banks, transforming the existing NGO-MPIs or promoting fresh microfinance operators. The basic concept underlying the emergence of microfinance banks is community oriented. Moruf (2013).</p><p><strong>2.7 &nbsp; &nbsp; MICROFINANCE BANK IN UGA</strong></p><p>Years back before 2005, Uga community Bank was operating as the sole financial institution which must shareholders were Uga famous indigene. The community bank came in existence because of the high demand by Orie Uga marketers who complain of being attack on there way to Ekwulobia bank. So, the demand for a bank was much so these famous indigene contributed and built a community bank to serve the purpose of saving and lending money. In 2005 government policy to encourage entrepreneur converted the bank into Uga microfinance bank (Ojiako, 2006).</p><p><strong>2.8 &nbsp; &nbsp; SYNTHESIS OF LITERATURE</strong></p><p>From the literature review, the following conclusions was drawn.</p><p>i &nbsp; &nbsp; &nbsp; A well centralized location will be provided for easy access to the bank building.</p><p>ii &nbsp; &nbsp; &nbsp; Provision of well ventilated space in the bank building will enhance the working ability of their staff.</p><p>iii &nbsp; &nbsp; Provision of standard design of microfinance bank building will attract more customers to the bank.</p><p><strong>2.9 &nbsp; &nbsp; GAP IN LITERATURE</strong></p><p>From the numerous relevant reviewed relating to microfinance bank building several gaps were identified which include:</p><p>1) &nbsp; &nbsp; None of the works showed how the building will be position for easy identification by the people using it.</p><p>2) &nbsp; &nbsp; None of the works showed the size of the building for smaller population.</p><p>3) &nbsp; &nbsp; None of the works showed the landscape of the building unused space.</p> <br><p></p>