Keywords : microfinance banks, alleviating, poverty, active poor, nigeria classification: gjmbr-b he impact of microfinance in the economic growth the world bank tried to focus on poverty reduction in nigeria the study not only profile poverty but also established qualitatively the trend of poverty. Abstract this research work focuses on the impact of microfinance institutions ( mfis) in reducing poverty in nigeria it examines whether the credit and financial facilities provided by the mfis especially the microfinance banks (mfbs) and cooperative investment and credit soceities (cicss) to the informal sector and micro. Microfinance as an effective tool for eradicating poverty and also the history of microfinance banks in nigeria it argues that while microfinance has developed some innovative management and business strategies, its impact on poverty reduction remains in doubt micro finance impact on poverty reduction. Abia state nigeria a b s t ra c t he study assesses influences of improving economic tstatus of households through accessing microfinance in abia state supported through microfinance however, poverty rate in abia state remain high despite the existence of microfinance banks a total of 398 samples were selected. The role of microfinance banks in poverty reduction in nigeria nigeria is a great nation, opulent in population and natural resources like other nations she is faced with challenges of which every government of the day, organizations and individuals take considerable measures towards attaining a. Banks) have statistically significant positive impact on the nigeria economy that is, the more the activities of microfinance institutions in nigeria, the higher would be the growth of the economy furthermore national poverty eradication programmes and family economic advancement programmes (feap) also, due to. Government owned institutional arrangements, poverty reduction programmes etc (lemo 2006) the central bank of nigeria survey in 2001 indicated that the operations of formal microfinance institutions in nigeria are relatively new, as most of them never registered after 1981 before now, commercial banks traditionally. Abstract the study presented empirical findings on the impact of microfinance on poverty reduction and economic development in nigeria it also examined microfinance as key to poverty alleviation and economic development it assessed the extent to which microfinance institutions had successfully helped the poor to.
Just as the causes of poverty are complex, so is its reduction as a result, many people have come to recognize that micro finance alone is not a magic wand to lift people out of poverty as it is at best only one of many factors that can contribute to poverty alleviation today, many micro finance institutions in nigeria subscribe. Ihugba et al (2013) examines the impact of microfinance banks on poverty reduction in imo state, nigeria using a stratified sampling method in the selection of customers the study found out that high income class has more capacity to save than poor dwelling in rural areas and concluded that the impact of microfinance on. Poverty in nigeria and effects of microfinance on poverty the central bank of nigeria (cbn,2004) views poverty as ―a state where an individual is not able microfinance the role of microfinance in poverty reduction is illustrated by figure 2 below fig2: impact of finance on production and poverty reduction model. From the findings of this study, the microfinance intervention has a positive impact on alleviation of poverty among the measuring poverty 11 253 where do the poor live 12 26 world bank poverty reduction strategy 13 27 nigeria 15 28 study area (obazu mbieri) 18 281 owerri 19 282 imo state 19.
The analysis also reveals that the impact of microfinance on poverty in nigeria can be explained in two phases the first phase, the take-off stage, sees poverty as increasing though at a decreasing rate as microfinance credit increases in the second phase, precisely starting from the year 2001, persistent. This research study investigates the impact of microfinance on poverty alleviation in nigeriathe researchers used questionnaire as an instrument to collect data tables and percentagedistribution analysis were used in data presentation for clear analysis, the study center on twobroad variables: poverty alleviation as the.
Wwwcscanadanet wwwcscanadaorg microfinance and poverty reduction: the nigerian experience ml audu1, jo achegbulu2 1fcib department of banking and finance, kogi state university anyigba, nigeria 2department of public administration, kogi state university, anyigba nigeria. Microfinance banks microfinance has been used on several occasions to reduce poverty, in rural areas in particular which are believed to harbour the poorest people in the world it is an important aid that can improve the economic performance of the poor in nigeria, government had made concerted efforts to alleviate.
Since the microfinance policy was put in place in december 2005, the effect has rarely been effect that microfinance institutions have had on reduction, or alleviation of poverty in nigeria then there is no doubt that majority of nigerians are living below the poverty line as set out by the world bank in. The government and state bank of pakistan made many considerable rules and regulation for the promotion and growth of this sector microfinance bank ordinance was passed in 2001 by the government of pakistan in a short period this method become major source of poverty reduction in pakistan because pakistan's. Significant impact on the loan beneficiaries in the study area which lead to poverty reduction microfinance institutions are implored to create more awareness on their operations and make less on this debate by examining the impact of microcredit on poverty alleviation using nigeria, the most populous.
Jacob fintan shehu modibbo adama university of technology, yola-nigeria abstract micro finance impact on poverty reduction in adamawa state was studied by a random selection of 88 beneficiaries of four micro finance institutions through a questionnaire survey data collected were analyzed using. Determine the relationship between micro finance bank investment and economic growth in nigeria ademola and arogundede (2014) examined the impact of microfinance to economy growth and development in nigeria laying emphases on the primary role of microfinance institutions which is poverty reduction and small. To give effect to these aspirations, various policies including the micro finance policy of 2004 were instituted over time by the federal government of nigeria to im- prove rural enterprise production capabilities (cbn, 2008 olaitan, 2001) this has encouraged the proliferation of microfinance banks in rural.
In effect microfinance finance institutions (mfis) became to be viewed as the most obvious vehicles for delivering financial services to the poor as a consequence, interest in microfinance has soared in the recent decade and the instrument is now seen as one of the most promising tools to tackle poverty in the developing. Professor mohammad yunus, the founder of grameen bank in bangladesh and the originator of the con- continuing intense debate about the impact of microfinance on poverty reduction is not surprising ppp$1504 compared with nigeria's ppp$144226 despite both enjoying windfalls from the oil price booms in. This paper examines the impact of microfinance on economic growth in nigeria emphasis is made on the primary role of microfinance institutions in nigeria which is poverty reduction and small scale enterprise financing assets, deposit liabilities, loans & advances microfinance banks were used proxy the activities of. There are other cases to the effect that delinquent borrowers of microfinance institutions are ostracized by joint liability groups and communities while they become destitute in their communities emeni, (2008) examines the impacts of microfinance on poverty reduction with application to peru it is found that the marr group.