Rural Financial Systems and Economic Development in Akwa Ibom State, Nigeria

Abstract

Rural communities are endowed with natural resources and manpower, but their potentials are not properly explored to improve the well-being of the people because of their inability to access loans. This study was conducted to examine rural financial systems and economic development in Akwa Ibom, Nigeria. It is imperative to note that through collective savings, 'Etibe' and 'Ozu,' the rural people have been able to assist themselves financially and also assist the communities through their contributions to rural projects. Survey design was used in this study with secondary data analyzed using descriptive statistics. This study was guided by functionalism theory. Findings from the study have revealed that rural people were able to assist themselves through various financial systems by accessing loans to support their businesses. Findings have further shown that through financial support and interest from these financial systems, rural people were able to contribute to rural development across communities. This study suggests, among others, urgent advocacy for the establishment of more rural financial institutions. Government grants should be given to these groups, and more training should be given to their personnel in line with modern financial operations.