Interrogating the Impact of Microfinance Banks on the Living Conditions of the Rural Poor in Akwa Ibom State, Nigeria. 1999 - 2020

More than twenty years after the introduction of microfinance banks into the financial and social lives of Akwa Ibom people, the impact of this initiative is yet to have any meaningful effect on the living conditions of the rural poor, which are primarily its main target. Clamped down by official red tape, incessant recapitalization demands, hounded by self-seeking revenue collection agency officials, operated by poorly trained and fraudulent staff on the one hand, and an equally fraudulent and uninformed clientele on the other. Microfinance banks in Akwa Ibom state have performed abysmally low. This paper adopts a historical and interrogative approach. It takes a critical look at the operating environment of microfinance banks in Akwa Ibom state. The paper establishes that less than ten percent of residents in the state patronize these banks and points out that rather than improve the quality of lives of its customers, it has on contrary left them worse off. It also suggests that Nigeria needs to deliberately make policies which will create an enabling environment for microfinance banks to succeed in their task of improving the quality of lives of the rural dwellers.