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Microfinance as a strategy for poverty reduction in Nigeria: Empirical investigation

Author:

Awojobi, Oladayo Nathaniel

Subject Area:

Social Sciences and Humanities

Abstract:

The introduction of Microfinance Institutions (MFIs) in some Asian countries and the subsequent impact of the scheme on poverty reduction prompted the Nigerian government in 2005 to replicate microfinance scheme in Nigeria as a strategy for poverty reduction. This paper investigates the impact of MFIs in Nigeria. A total of 40 respondents comprising 30 females and 10 males were interviewed through questionnaires. From the investigations, the paper found that microcredit from MFIs impacted positively on clients in the areas of income, employment and household well-being. However, this study was on a smaller magnitude. As a result of this, the study cannot be generalized in the logical term which prompted the paper to call for holistic appraisal of MFIs as a strategy for poverty reduction.

PDF file:

6357.pdf

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