THE IMPACT OF MICRO CREDIT ON POVERTY ALLEVIATION IN NIGERIA
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- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
This research project sought to empirically examine the impact of microfinance institutions on poverty in Nigeria. To conduct this research, structured questionnaire was used. The questionnaire consisted of 25 questions which focused on the 4 areas of microfinance and poverty in Nigeria. The questionnaire consisted questions which could be answered in a dichotomous (yes/no) and in likert manner. The main purpose and intent behind designing the questionnaire in such a simple way was to make it easy for the selected samples to respond and thereby get a higher response to the questionnaire. To evaluate the impact of microfinance institutions on poverty level in Nigeria, a quantitative method was adopted. These methods include; percentage and chi-square analyses. The result shows that the contribution of micro credit has impacted on poverty reduction among the poor. This study shows that microfinance programmes have the potential to alleviate poverty especially in increasing level of income and reducing vulnerability. This will promote people economic capacity and bring sustainable development. It is, therefore, recommended that microfinance banks should improve accessibility of their services to poor by relaxing their terms and conditions on accessing services, especially loans. And MFIs should widen their market by introducing new products, such as house loans, agricultural loans, education loans and loans for initial capital. This will make borrowers access relevant loan products to meet appropriate objectives.
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