Financial market, formal and informal market, financing mechanism.


This paper analyse the weakness of existing rural financial markets, survey the existing formal and informal financial markets in rural areas, their financing mechanisms, strengths and weaknesses, and propose an agenda from a viable rural financial market in Nigeria. It is divided into four parts. Part 1 presents a critique of the operation of formal financial institutions in rural markets. Part 2 identifies the existing informal financial markets, noting their structure and financing mechanisms and the overall influence on the rural people. Part 3 analyses the challenges and prospects of rural financial markets, while Part 4 presents the conclusion and proposes an agenda for a viable rural financial market in Nigeria

Author Bio

The author is a staff of Central Bank of Nigeria.

Publication Title

CBN Bullion


No. 4


Volume 18



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