Microfinance and Economic Empowerment in Nigeria: A Critical Review of Impact and Sustainability

Abstract

Microfinance emerges as a transformative beacon in Nigeria's journey towards economic empowerment. This paper dives into the intricate weave of microfinance within Nigeria's bustling economic narrative. Through rigorous literature analysis, we unearth the historical essence of microfinance, measure its tangible socio-economic impacts, and highlight its undeniable role in vanquishing poverty and kindling entrepreneurship. Drawing insights from a curated collection of peer-reviewed articles and empirical studies, our exploration offers a panoramic view of Nigeria's microfinance terrain. The revelations are striking. Microfinance institutions have pioneered avenues of financial inclusion, ignited entrepreneurial ventures, and steadily eroded the bastions of poverty. However, challenges like escalating loan default rates and operational inefficiencies cast long shadows. Yet, the advent of digital innovations signals hope, promising to reshape these challenges into opportunities. In summation, the paper crafts a compelling narrative: for microfinance to etch lasting imprints on Nigeria's economic canvas, it must continually reinvent, adapt, and innovate. Our recommendations are clear-cut—champion regulatory reforms, invest in capacity building, elevate financial literacy, and design financial products that echo Nigeria's diverse ethos. With microfinance as its guiding star, Nigeria's economic horizon gleams with untapped potential and promise
 Keywords: Microfinance, Economic Empowerment, Nigeria, Financial Landscape, Digital Innovations.