Rural areas, like urban areas have increasing demand for credit because such credit reduces the impact of
seasonality on incomes. However, formal financial institutions have maintained low presence in the rural
areas. This has affected the rural dwellers’ access to deposit savings and credits that can improve their
economic activities. This study examined the influence of informal microfinance on economic activities of
rural dwellers in the selected rural areas of Kwara South Senatorial District. Using a multiple regression
analysis, six hundred (600) questionnaire was administered on members of informal microfinance institution
in the study area, the study found that fund provided as credit facilities for transaction purposes, funds for
housing and combating diseases have significant influence on the economic activities of the rural areas. The
study recommends group savings and group lending in order to increase savings and credits to the rural
dwellers. Government should also provide improved infrastructural facilities that would enable rural dwellers
have more access to their economic activities