IMPACT OF MICROLOANS ON SMALL BUSINESS GROWTH IN RURAL AREAS OF NORTH-EAST NIGERIA

Persistent underdevelopment in rural North East Nigeria is compounded by limited access to capital, inadequate infrastructure, and widespread economic displacement caused by conflict. Small businesses, often run by women and youth, remain chronically underfinanced, undermining their potential to stimulate local economic recovery and reduce poverty. This study examines the role of microloans in supporting small business growth across Adamawa, Borno, and Yobe States between 2014 and 2024. Using a trend-based analytical framework, the study integrates secondary data drawn from institutional reports, microfinance access surveys, and national small business statistics. Five tables (Tables A to E) provide data on credit access, gender distribution, digital finance use, business survival, and employment outcomes. The conceptual framework is grounded in institutional finance theory and the resource-based view of enterprise growth. Findings reveal that microloan coverage in rural North East Nigeria expanded from 18.2 percent in 2014 to 51.4 percent by 2024, with women-led businesses accounting for 57 percent of microloan recipients in 2024. The adoption of mobile lending platforms also rose from under 3 percent in 2014 to 48 percent by 2024, contributing to an average 22 percent increase in business survival rates and a 14 percent rise in rural employment among loan beneficiaries. The study recommends scaling up digital microcredit delivery channels, integrating capacity-building for female entrepreneurs, subsidizing onboarding costs for first-time borrowers, and embedding flexible repayment terms to accommodate regional volatility. These strategies are essential for strengthening rural enterprise ecosystems and fostering inclusive growth in Nigeria’s most vulnerable zones.