Informal Financing,Micro Small Enterprises and Achievement of Vision 2020 in Nigeria:Challenges and Opportunities

Inability to access the credit and services of formal financial institutions due to some stringent conditions such as high interest rates, provision of collateral security and guarantors has been identified as major constraints to micro and Small Enterprises (MSEs) development towards achieving Vision 2020 in Nigeria. Promotion of the informal financing for economic advancement has a correlation with MSEs development. This paper therefore focuses on examining the relationship between informal financing and MSEs towards achieving Vision 2020 in Nigeria. Primary and secondary data were used in conducting this study. It was discovered that the major challenge confronting the l.}'~~'nw' financing schemes (IFS) is the issue of non repayment of the loan borrow by the IFS customers. This affects their capital base and the amount of loan they can give out. Based on this, the study recommends that the government should endeavour to support the informal financial institutions financially and make w. effort to incorporate their activities under the supervision of the Centrai Bank of Nigeria so as to reduce the risks associated with their operations.