GASPRO International Journal of Eminent Scholars

ABSTRACT
Given the importance of the microfinance sector to the socio-economic and political
development of our polity, this study examined the law and practice of microfinance banks in
promoting credit securities for the growth of rural areas in Nigeria. It sought to fill the gap of the
rare research into the influence of the availability of codified extant laws guiding the practice of
microfinance institutions in Nigeria. Four research questions and objectives guided the study,
and findings revealed the ineffectiveness of the Revised Regulatory and Supervisory Guidelines
for Microfinance Banks in Nigeria, 2012 (rrsgmfbn). The research, therefore, recommends the
promulgation of extant laws to specifically guide the practice of microfinance banks, as such
laws and regulations would promote credit securities for the growth of rural areas in Nigeria.
Also recommended are that high interest rates charged on loans should be reduced in the
interest of the clients; that appropriate and stringent measures should be put in place to ensure
prompt and timely repayment of loans by creditors and clients; and that a rich capital base
should be made available to microfinance institutions by governments to enable them to
service and respond to the needs of entrepreneurs, clients, and investors.
KEYWORDS: Law and Practice, Microfinance Banks, Credit Securities, Growth, Rural Areas, and
Nig