ASSESSING THE ROLE OF MICROFINANCE BANKS IN PROMOTING FINANCIAL INCLUSION: A STUDY OF POLYUNWANA MICROFINANCE BANK NIGERIA LIMITED

Financial inclusion remains a critical driver of poverty reduction, capital formation, and economic empowerment in developing economies like Nigeria. This study empirically assesses the role of PolyUnwana Microfinance Bank Nigeria Limited in promoting financial inclusion across its dual operational base—serving academic stakeholders (staff and students) at the Akanu Ibiam Federal Polytechnic Unwana campus, as well as informal commercial clusters (petty traders, transport operators, rice millers, and agrarian producers) at the Eke Market branch in Afikpo, Ebonyi State. Utilizing a cross-sectional survey research design, primary data were gathered using a structured questionnaire administered to a representative sample of 120 key respondents (n = 60 campus-based clients and n = 60 market-based clients). Descriptive statistics (Mean and Standard Deviation) and Multiple Linear Regression analysis via SPSS were employed to evaluate key microfinance mechanisms: savings mobilization, micro-credit delivery, financial advisory services, and digital banking reach against financial inclusion outcomes. The empirical findings reveal that low-barrier deposit channels, specifically the PolyUnwana Daily Savings Scheme (PDSS) (β1 = 0.412, p < 0.05), and targeted micro-credit facilities (β2 = 0.354, p < 0.05) exert a statistically significant positive effect on banking penetration and micro-enterprise growth. However, loan processing delays and limited digital/USSD infrastructure (β3 = 0.285, p < 0.05) represent notable operational bottlenecks. The study concludes that institution-anchored microfinance banks serve as vital dual-economic catalysts but require digital upgrading to optimize regional financial inclusion. Recommendations include expanding mobile agent banking networks across market clusters, automating credit appraisal workflows for rapid 48-hour disbursement, and establishing specialized agro-processing credit windows (ranging from ₦50,000 to ₦1,500,000).