International Journal of Academic Pedagogical Research (IJAPR)   Year: 2019 | Volume: 3 | Issue: 12 | Page No.: 9-15 Rural Informal Financial Markets System in Developing Economy: Challenges and Prospects in Kaltungo Local Government Area of Gombe State-Nigeria Bruce Frank Ambore, Oladejo Lukman G (PhD), Bashir Babatunde Alao (MBA, ACA, CFE & C Abstract: In searching for alternatives to formal sector finance, much attention is increasingly being paid to informal and semi-formal finance (including micro-finance) for meeting private sector credit demand, particularly from small enterprises. But the difficulties of making informal finance play a modified role quite different from the one it was used to, in terms of loan characteristics and uses, became apparent with the failures of these institutions. This study seeks to examine the challenges and prospects of the rural informal financial market in Kaltungo Local Government Area of Gombe State-Nigeria. The population of this study was 150 consisting of traders, farmers, businessmen/women and civil-servants patronizing the informal financial market in the study Area. The study utilized primary and secondary data and data was analyzed using simple percentage. The study revealed that the only (First Bank Nigeria PLC) existing in the local government area is inadequate to service the rural people and that 51.3% of the people depend on money lenders (informal financial market) for their source of business financing (loan). The study therefore, recommends among others that the rural banking programs in Nigeria should be reviewed with a view to establishing an avenue for effective rural banking that will help daily Adashe collection and the money generates from the rural savings through Adashe be deposited in the formal financial institution, with a corresponding rate of interest as in deposit money banks.