Microfinance as an Effective Tool for Poverty Alleviation in Nigeria
CHAPTER ONE
Aim and Objectives of the Study
The aim of this research work is to:
- To examine the impact of microfinance bank on poverty alleviation.
- To identify the availability of credit facility on poverty alleviation on small scale enterprises (SME’s)
- To evaluate the effect of small-scale enterprises on poverty alleviation.
CHAPTER TWO
REVIEW OF RELATED AND RELEVANT LITERATURE
Introduction
In the past two decades, microfinance programmes have been considered by the development economists as one of the foremost strategies for poverty reduction. Although some researchers argue that Microfinance has not really succeeded in its role as grassroots economic developer in the sense that it has not been effective in reaching the poorest (Hulme & Mosley, 1977). But others opine that the programme is capable of bringing the poor into the lime light if properly implemented. This debate creates the gap for independent researchers to further examine the impact of Microfinance on poverty alleviation as donors and practitioners may be biased in their assessment. It is therefore believed that this study will contribute to literature and further make clarification on this debate by examining the impact of microcredit on poverty alleviation using Nigeria, the most populous black nation in the world as a case study. Poverty contributes to underdevelopment and its reduction leads to economic development. To be poor connotes deprivation from the basic necessities of life. In fact, poverty engenders inability to afford the minimum basic essentials like food, children education, good housing, healthcare and good clothing to mention few (Todaro & Smith, 2011, p. 2). Suffice to say that the poor are being denied their share of the nation’s resources and other necessities that are generally available in the society for their comfort. Poverty is a worldwide socio-economic problem. Hence, its awareness is much more favored at the international level of finance and governance. For example, the World Bank, United Nations (UN) and International Monetary Fund (IMF) have developed various programmes and projects that would improve the life of the poor, ensure health improvement and sustainable growth and development (Ssewamala, Sperber, Zimmerman, & Karimli, 2010).
Records have shown that about half of the world’s population (about three billion people) lives on income of less than two dollars a day (Goel & Rishi, 2012). It is also disheartening that one child out of five living in these poor communities does not live to see his or her fifth birthday! No wonder that the United Nations declared Millennium Development Goals (MDGs) in September 2000 to ensure global development. The major policy thrust of this program is to make life more meaningful to the poor and downtrodden. In essence, reduction of poverty and hunger constitute the basic root of all other problem issues focused on MDGs (Kalirajan & Singh, 2009). Ironically, in Sub-Saharan Africa which is considered as the World’s poorest region, the concept of poverty is relatively understudied and has attracted less attention in academic literature (Ssewamala, Sperber, Zimmerman, & Karimli, 2010). To this effect, little efforts have been made to critically analyse the impact of microfinance programmes on poverty reduction, particularly in Sub-Saharan Africa.
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to examine Micro Finance Bank as a tool for poverty alleviation.
Sources of Data Collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to reiterate that the objective of this study was to examine the role of cash management in the success of a business.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given.
In this chapter, certain recommendations are made which in the opinion of the researcher are drawn from the findings of the study.
Summary
This study was undertaken to examine Micro Finance as an effective tool for poverty alleviation. The study opened with chapter one where the statement of the problem was clearly defined. The study objectives and research hypotheses were defined and formulated respectively. The study reviewed related and relevant literatures. The chapter two gave the conceptual framework, empirical and theoretical studies. The third chapter described the methodology employed by the researcher in collecting both the primary and the secondary data. The research method employed here is the descriptive survey method. The study analyzed and presented the data collected in tables and tested the hypotheses using the chi-square statistical tool. While the fifth chapter gives the study summary and conclusion.
Conclusion
With the enumeration of the important role of microfinance in poverty reduction, the study projected into the factors that evaluate poverty alleviation of the poor in the country. Eight explanatory variables were explored in the field during the study process. Six of the explanatory variables (microfinance loan, Male, Living Standard, Health Standard, Marital and household size were found to be statistically significant in determining the Poverty Alleviation of the microfinance loan beneficiaries in Nigeria. In the final analysis, it is postulated that in order to enable microfinance to achieve the objective of poverty reduction, the Government must create an enabling environment and establish regulatory laws that will guide the efficiency of Microfinance Institutions (MFIs). Concerted efforts should be made towards the provision of supportive services like education and training on entrepreneurship, increase in health facilities and provision of other social services for unemployed, poor and those who are vulnerable to poverty. It is also important for the MFIs to create public enlightenment programmes that would spread their role as development agents for poverty reduction and encourage the poor people who are supposed to be their target audience.
REFERENCES
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