International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2023 | Volume: 7 | Issue: 7 | Page No.: 55-61 Microfinance Banks' Operations and Rural Development in Nigeria: An Empirical Discourse Download PDF NWAJEI, A.C. & OZIWELE, Eugene Abstract: The study examined the effects of Microfinance banks' operations (MBOs) on rural development in Nigeria for period of (20) years spanning through 2002 to 2022. The regressor employed are microfinance banks' investments (MBIV), microfinance banks' deposits (MBDP), and microfinance banks' loans (MBLA) while the regressed is rural development. Again, inflation rate (INFR) served as the control variables. Data were collected from CBN Statistical bulletin, 2021. The study adopts the Fully Modified OLS (FMLS) Methodology. Data set was described using descriptive statistics, correlation analysis, and inferential analysis (FMLS). The finding shows microfinance banks' investments (MBIV), microfinance banks' deposits (MBDP) improved rural development significantly. However, both microfinance banks' loans (MBLA) and lending rate (INFR) discouraged rural development significantly. Hence, the paper concludes that, microfinance banks' operations improved rural development of Nigeria provided that, microfinance banks' loans (MBLA) and inflation rate (INFR) are reduced to a great extent. As such, the Nigerian government should support and foster the development of new microfinance institutions in rural areas since doing so will give residents of those areas who lack easy access to banking services the opportunity to deposit money and develop a saving habit. Rural residents require financial education. The (CBN) should launch programs that focus on business investment opportunities made available by the services of MOBs in partnership with other organizations.