Microfinance and Poverty Alleviation in Southwest Nigeria

Microfinance and Poverty Alleviation in Southwest Nigeria

Author: J. N. Taiwo

Publisher:

Published: 2018

Total Pages: 11

ISBN-13:

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In order to alleviate poverty and improve the living standard of the people of South-West Nigeria, it is imperative that micro/small financial services such as credit, insurance, money transfer, etc. are provided in order to engage them actively in productive activities. Globally, there are several failed policies by governments, particularly in Nigeria over the years aimed at poverty alleviation. This study examines microfinance scheme towards the dispersion of credit amongst the working poor; draws from the data collected from field survey and these were reported using tables, frequency counts and cross-tabulations to draw inferences and a loan demand model was specified and estimated using the Ordinary Least Squares (OLS) econometric technique.The study used cross-sectional data collected from selected respondents in selected areas of both the Lagos and Ogun States of Nigeria respectively. The study found that majority of the Microfinance banks in Nigeria are model after the Grameen Bank which is aimed at the poor and people with basic, little or no education and that loan demand is interest rate insensitive. Therefore, MFIs should design appropriate products that are flexible enough to meet the different needs of the poor for both production and consumption purposes. Besides, governments (local, state and Federal) should urgently tackle the infrastructural gaps such as electricity, water and efficient transportation system which impact greatly on the standard of living of the people.


Microfinance and Poverty Reduction: An Empirical Evidence from Benin Metropolis South-South of Nigeria

Microfinance and Poverty Reduction: An Empirical Evidence from Benin Metropolis South-South of Nigeria

Author: Uyi Benjamin Edegbe

Publisher: Anchor Academic Publishing (aap_verlag)

Published: 2014-02-01

Total Pages: 84

ISBN-13: 3954896737

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This book is an empirical study of how microfinance impacts on poverty reduction in Nigeria. The book examined conceptual issues in poverty and microfinance with focus on the nature and incidences of the poverty phenomenon, justification for the establishment and growth of microfinance in Nigeria. This book with theoretical and empirical findings investigates the previous attempts by the governments in alleviating poverty and specifically how microfinance have helped in reducing the poverty menace especially since the promulgation of the microfinance banking act in 2005 by the Central bank of Nigeria.


Microfinance and Poverty Reduction in Nigeria

Microfinance and Poverty Reduction in Nigeria

Author: Uyi Benjamin Edegbe

Publisher: GRIN Verlag

Published: 2013-06-07

Total Pages: 90

ISBN-13: 3656444242

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Master's Thesis from the year 2013 in the subject Sociology - Miscellaneous, University of Freiburg (Global Studies Program, Institute fur Soziologie.), language: English, abstract: [...] The poverty question is a global phenomenon. It is perhaps one of the greatest challenges facing Mankind today, especially in most parts of the developing world. This Perhaps explains why the eradication of poverty was listed as the first of the eight issues of the millennium development goals. The problem of poverty is more disturbing giving the fact that there is abundant and enormous wealth in the world to adequately meet the needs of every one. Poverty may be defined as a condition of lack and inability to meet adequately the basic needs of life such as Shelter, food, education and health care. Similarly, according to a United Nations statement: Poverty is a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to; not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living on marginal or fragile environments, without access to clean water or sanitation.(UN,2008 quoted in Ucha,2010). 2 In other words, the problems of poverty is more worrisome in Sub-Saharan Africa with 47.5% of the people living on less than $1.25 and 70% living on less than $2 per day in Sub-Sahara Africa (World Bank, 2008).The figure may have become worse considering the drought that hit parts of horn of (East) Africa in 2011 and the problem of maladministration or poor governance bedeviling the region. In Nigeria the high level of corruption, poor leadership has contributed to exacerbate the problem of poverty. Ucha, 2010 puts it thus: “Unemployment, corruption, non diversification of the economy, income inequality, laziness and a poor educational system can be considered to be some of the key factors contributing to poverty in Nigeria”(p.46). Given the fact that Nigeria is a country with rich human and natural resources, it is disturbing that majority of her citizens are still very poor. The government has over the years formulated a lot of programs and policies geared towards poverty reduction; however it remains a controversy whether those programs and policies have actually achieved their desired objectives.[...]


Islamic Microfinance and Poverty Alleviation at Grassroots in South-Western Nigeria

Islamic Microfinance and Poverty Alleviation at Grassroots in South-Western Nigeria

Author: Oyesanya O. Sodiq

Publisher:

Published: 2014

Total Pages:

ISBN-13:

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The plethora of poverty in many parts of the Third World, Less Developed Countries (LDCs), despite quite spectacular economic growth, has spawned interests in the scourge in academic and policy-making circles. In the recent years, international consensus has emerged to focus development goals on poverty alleviation. Governments have agreed to formulate and implement anti-poverty plans that would set time-bound goals and targets for the substantial reduction of poverty. Hence, programmes and institutions that provide credit and savings facilities have been promoted by governments, international development organizations, local non-governmental organizations and grassroots bodies as an indispensable strategy for alleviating poverty in Less Developed Countries (LDCs) and increasingly also within poor communities of Industrially Advanced Countries (IACs). Microfinance initiative therefore, is widely acclaimed as a new innovative approach to alleviate poverty. Through many a financial and social intermediation service, the poor who were denied access to mainstream banking services are now able to benefit from various financial products and services. Today, there are more than 7000 micro-lending institutions providing loans to more than 25 million poor individuals across the world, their vast majority being women. Thus, the concern over credit provision and finance accessibility to the poor and the vulnerable is inevitably relative to Islamic financial intermediaries that espouse greater socio-economic responsibilities-social justice, equitable distribution of income and wealth and economic development. The statistical indices however, show that the existing microfinance institutions in Nigeria serve less than one million people out of forty million being the potential number that needs the services. And paradoxically, the operators of these institutions charge interest-rate as high as up to 36%-42% for lending. This further aggravates the ubiquitous inequalities in the distribution of wealth and income. Also, the aggregate micro-credit facility in Nigeria account for about 0.2% of the GDP; and is less than 1% of total credit in the economy. Nigeria being a country with a Muslim majority represents a potential for Islamic Microfinance especially that most Muslims reject the conventional interest-based micro financing. Therefore, the paper is aimed at a critical analysis of poverty alleviation strategies of Al-Hayat Relief Foundation.


Microfinance Intermediation in Sub-Saharan Africa

Microfinance Intermediation in Sub-Saharan Africa

Author: Joel Oke

Publisher: LAP Lambert Academic Publishing

Published: 2011-03

Total Pages: 144

ISBN-13: 9783844317749

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The book, "Delivery by Non-Governmental Organizations and Alleviation of Rural Poverty in Southwestern Nigeria" is written based on a research conducted to investigate the effects of microcredit and saving facilities through microfinance Non-Governmental Organizations (MNGOs) on poverty alleviation among smallholders in rural Southwestern Nigeria. The study was carried out among clients and non-clients of two MNGOs viz: COWAN and FADU in the area. Multistage random sampling was used to select 200 samples from each of clients and non-clients of MNGOs. Primary data obtained were analyzed using descriptive and inferential statistics. The analysis was unique in that it made extensive use of difference of two means and deviation measures among others to discuss similarities and differences in socioeconomic characteristics of the groups in comparison. The study provided a conceptual framework that explained how micrifinance provision by NGOs can move clients away from poverty line. It analyzed the incidence, dept and severity of poverty as well as the determinants of poverty, savings, mcrocredit repayment among clients and non-clients of NGOs.


Microfinance and Poverty Reduction

Microfinance and Poverty Reduction

Author: Susan Johnson

Publisher:

Published: 1997

Total Pages: 148

ISBN-13:

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Focuses on how financial services for poor people, particularly those dealing with very small deposits and loans (microfinance), can best be provided.