IMPACT OF MICRO-CREDIT AND MICRO-SAVINGS ON WEALTH CREATION AMONG MICROFINANCE BANK CUSTOMERS IN DUTSE, JIGAWA STATE

Abstract

This study examined the impact of micro-credit and micro-savings on wealth creation among microfinance bank customers in Dutse, Jigawa State, Nigeria. A descriptive survey design with a quantitative approach was adopted. Data were collected through structured questionnaires from 392 customers of two licensed microfinance banks, with 370 valid responses analyzed. Descriptive statistics and multiple regression analysis were used for data analysis. The findings reveal that micro-credit and micro-savings have positive and statistically significant effects on wealth creation. Micro-credit supports business expansion and income generation, while micro-savings encourages capital accumulation and investment in productive assets. The results show that microfinance services explain about 29.4% of the variation in wealth creation among customers. The study recommends flexible loan policies, savings incentive programs, and enhanced financial literacy initiatives to strengthen the role of microfinance in promoting sustainable wealth creation.