Does Institutional Microfinance Credit Alleviate Rural Poverty?

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Does Institutional Microfinance Credit......pdf (7.68 MB)

Date

2012-02-04

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Department Of Ecnomics, Nasarawa State University, Keffi

Abstract

This study investigated the impact of institutional microfinance credit on the poverty level of borrowers from five selected microfinance banks located in selected five local government areas (Giwa, Makarfi, Kudan and Zaria) of Kaduna state using field survey. The results indicated that change in average monthly income takes the lead in the impact of loan on the borrowers' businesses at 45.6% in the study area. Also, a sizeable percentage of the sample borrowers were able to pay children school fees (28.8%), able to feed their family (20.8%), built a small house (13.5%), accumulate personal savings (11.6%), afford hospital bills (10%), acquired bicycle, motor-cycle or car (5.2%), started small business (5.2%), changed from pit latrine to lavatory (3.6%). Again, this is significant for poverty alleviation.

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Keywords

Credit, Institutional, Microfinance, Poverty, Rural

Citation

Annan, K. (2005); In: “Role of Microfinance in Poverty Eradication”; Kpakoi, L. (2005), Proceedings of the Launching o f Microfinance Policy Regulatory and Supervisory Framework for Nigeria. Dec. Abuja. Abdul Raufu, M. (2007); “Horizontal Inequalities in Nigeria, Ghana and Cote D’Ivoire: Issues and Policies” Centre for Research on Inequality, Human Security and Ethnicity; CRISE working paper No. 45Department of International Development; Oxford University. Benneth, O.O. (2007); “Fiscal Policy and Poverty Alleviation: Some Policy Options for Nigeria” AERC Research paper No. 164; African Economic Research Consortium, Nairobi; February. Besley, T. (1994); “Savings, Credit, and Insurance” In: Chanery, H. and Srinivasan, T. N; Eds, Hand-Book of Development Economics. Amsterdam: North Holland. Ernest, A. (1997); “The Formal Finance Financial Sector in Ghana after the Reforms” Overseas Development Institute Working Paper, 86. London. F.O.S (1999), Annual Report; Federal Office of Statistics. Abuja. Hoff, K; and Stieglitz, J. (1990); Imperfect Information and Rural Credit MarketsPuzzles and Policy Perspectives. The World Bank Economic Review 4(3) September: 235-50.

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https://keffi.nsuk.edu.ng/handle/20.500.14448/6498

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