CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND TO THE STUDY

Osogbo microfinance bankers the first micro – finance bank in Osun State commissioned by the former governor Alhaji Isiaka Adeleke on Monday 31th Dec, 1992 at Osogbo Local Government Area of Osun State. The project took off in the country with a mandate from the presidency to improve the lost of people through credit facilities devoid of conventional banking bottle necks and its operating capital boss supplied by unfired community.

            This community provides the building for the operation and the management staff a well ass the board and the truster. The idea is that when such collective money is given out as loans, there won’t be much difficult in recovering it back as at when due.

1.2     STATEMENT OF THE STUDY       

During the research, a lot of problems were encounter that is lack of cooperation on the part of osogbo micro-finance bank staff and their customer. Some of the respondents were not frequently turn up for interviews organized by the researchers. Therefore, the researcher has to be punctual in order to get the reliable sources.

On the part of the researchers, Non-Availability of enough time and financial problem created have in the process of writing this project.

1.3     JUSTIFICATION OF THE STUDY

     The main reason why we study osogbo micro-financial bank us to know the affairs of the bank in the area of how the management from the top lowest level operate in the community.

            Also the purpose is to know how far the osogbo micro-finance bank has contributed to the economic well being of the great nation - Nigeria. And to know how effective is micro-finance bank in the area of Agricultural sector.

1.4     OBJECTIVE OF THE STUDY

            The aim of this study will be conferred around the following:

To reveal the impact of micro-finance banks on rural dwellers and benefit of osogbo micro-finance bank to the people of osogbo and its entire environment

To show the accounts micro-finance bank, and how they have been of help to the Agricultural development.

1.5     STATEMENT OF RESEARCH HYPOTHESIS

The following hypothesis as a basis of the questions to be answered for the study.

1.      NULL HYPOTHESIS:

Ho: the impact of micro-finance bank   to the development of economic of rural of dweller.

2.      NULL HYPOTHEESIS

Ho: the micro- finance bank performs to the rural area.

1.6     SCOPE OF THE STUDY

With available data on microfinance banking and rural dweller, the case study will focus its attention on the management system of osogbo micro- finance bank, osogbo and suggest wages by which the micro-finance banking system can be improved.

1.7     ORGANIZATION OF THE STUDY

The micro-finance banks are being controlled by the following Government agencies:

1.      The central bank of Nigeria (CBN)

2.      The micro-finance Bank implementation committed (CBIN)

3.      Also, the Natio0 Board of micro-finance bank.

The organization of osogbo micro-finance bank ass a case of study is well organized manager according to the interview and the questionnaire

      The board of director representation the owner and formal at the polities of the bank. The head of the management terms’ the manager, supported by head of various department and other supporting staff.

      The management execute the policies formulates by the board for the day to day smooth running of the bank.

1.8     LIMITATION OF THE STUDY

With the available data on micro-finance banking and the rural dwellers, the case study will focus its attention on the management system of Osogbo micro-finance and suggest ways by which micro-finance banking system can be improved.

            In addition, it will show all the requirement in establishing the micro-finance banks and its control. The research development of the Central Bank was also consulted for verification of information. Other sources of information include annual reports of control banks from 1996 to data and other financial news paper and magazines.