– Microfinance as a Strategy for Poverty Reduction –
ABSTRACT
This study was carried out to assess the impact of microfinance as a strategy for poverty reduction in Akwa Ibom state using Gufax Microfinance Bank at No. 3 Udotung Uboh Street (FADUCK HOUSE) Uyo as a reference point. The researcher were randomly selected the sample size of 50 respondents from the list of staff and client of the institution use as a case study through well structure questionnaire.
The data were carefully analyzed through the use of Chi-square and simple percentage. Finding from the data asserted that microfinance is a tool for poverty reduction in Akwa Ibom state. It was discovered also that microfinance impacted positively on the expansion of the business improve standard of living, encouraged savings, provides financial assistance and employment opportunities to the people of the area.
Despite these enormous potentials of microfinance at evolving the economy, there still exits a large untapped opportunities in the financial intermediation of the country and as such, we therefore, recommended that microfinance Banks should develop product strategies by way of providing unhindered access to financial services, such as soft loan and micro credit to all the productive but poor and low income borrowers and to see to the financial needs of their target groups.
TABLE OF CONTENT
Cover Page
Title Page – – – – – – – – – – i
Declaration – – – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgements – – – – – – – – iv
Certification – – – – – – – – – v
Abstract – – – – – – – – vi
Table of Contents – – – – – – – – vii
CHAPTER ONE: GENERAL INTRODUCTION
1.1 Background to the Study – – – – – – – 1
1.2 Statement of the Problems – – – – – – – 2
1.3 Objectives of the Study – – – – – – – 3
1.4 Research Questions – – – – – – 4
1.5 Hypotheses – – – – – – 4
1.6 Significant of the Study – – – – – – 4
1.7 Scope/Limitation of the Study – – – – – 5
1.8 Definition of Terms – – – – – – – – 5
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.0 Introduction – – – – – – – – 7
2.1 Theoretical Framework – – – – – – – 7
2.2 Conceptual Issues – – – – – – – 9
2.3 Experiences on Finance Programmes for the Poor – – – – 11
2.4 Challenges of Microfinance in Nigeria – – – – – 12
2.5 Experience of some Microfinance Models – – – – 12
2.6 The Challenges of Access to Capital – – – – – 13
2.7 Addressing the Challenges – – – – – – 13
2.8 Access to Source of Capital – – – – – – 15
2.9 Non Collateral Lending – – – – – – 16
2.10 Capacity Building – – – – – – 16
2.11 Employment Generation – – – – – – – 17
CHAPTER THREE: RESEARCH METHOLOGY
3.0 Introduction – – – – – – – – 18
3.1 Research Design – – – – – – – – 18
3.2 Study Area – – – – – – – – – 18
3.3 Population of the Study – – – – – – – 19
3.4 Sample and Sampling Technique – – – – – 19
3.5 Sources and Instrument of Data Collection – – – – – 20
3.6 Method of Data Analysis – – – – – – – 20
3.7 Model Specification – – – – – – – 21
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction – – – – – – – – 22
4.2 Questionnaire Distribution and Retrieved – – – – 22
4.3 Assessment of the Impact of Micro-finance to Traders – – – 25
4.4 Test of Hypothesis – – – – – – – – 26
4.5 Test of Hypotheses – – – – – – – 28
4.6 Discussion of Finding – – – – – – – 31
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
- Introduction – – – – – – – 33
5.1 Summary – – – – – – – – – 33
5.2 Conclusion – – – – – – – – – 34
5.3 Recommendation – – – – – – – 35
References – – – – – – – – – 37
Appendix – – – – – – – – – 38
INTRODUCTION
Poverty is a multifaceted problem which manifests itself in different form depending on the nature and extent of human deprivation. In absolute terms, poverty suggests insufficient or the total lack of necessities such as food, housing and medical care. It embraces the inadequacy of education and environmental services, consumer goods, recreational opportunities and transportation facilities, etc.
In relative terms, people are poverty-stricken when their income fall radically below the community average. This implies that such people cannot have what larger society regard as the minimum necessity for a decent living (World Bank 2000). However, the reality of the world is that many countries are underdeveloped with precarious development indices. The wealth of the world is seems to be concentrated in a few hands.
In Nigeria which was place as 28th poorest country in the threshold of the 21st century fares very poorly in all development indices Umo (2003), revealed that “countries with high concentration of below 1 day poverty level include Nigeria which is about (70.2%)”. Thus poverty situation in the country (Nigeria) is quite disturbing. Both the quantitative and qualitative measures attest to the growing incidence and depth of poverty in the country.
This situation is however present a paradox considering the vast human and physical resources with which the country is endowed. It is even more disturbing that despite the large amount of human and material resources that have been devoted to poverty reduction by the successive government, no noticeable success has been achieved in this direction Okojie (2001). The study on poverty assessment in Nigeria had establish qualitatively, the trend of poverty encroachment to the development from 1980-2004.
REFERENCES
Akin, O. O (2008) policy issues in informal financial sector Development: CBN Billion 22(3): 20-27.
Akpan Usen Obong (2011) Millennium Development Goals: Prospects and Problems.
Andah, D. O and Stell W. F. (2009). Development and Microfinance Regulatory in Ghana: Implications for Development and performance of the industry, Washington D. C. World Bank Policy Research working paper.
Attach A. A. (2006). The lives of Micro Entrepreneurs in Nigeria. (BN Billion 14 (13): 38-52.
Besey G. (2007) “Political Economy of Alleviating poverty theory and institutions “Ishley Publishers London.
JOURNALS
Central Bank of Nigeria 2005. Assessment of the performance of Nigeria Rural Financial Institution Monograph of the Research Department CBN.
Central Bank of Nigeria 2004. Progressive Report on SMIEIS Accessible from http://www.cbnbank.org
Central Bank of Nigeria 2012. Microfinance policy regulatory and supervisory framework vol2.no.4:34-61
Central Bank of Nigeria: 2008. Guideline for the operation of Micro-credit funnel: Development – Finance Department, CBN, Abuja.
David H. 2013. The financial system that works for the majority national conference on poverty Alleviation in Nigeria. (NES) 2013, June.
Dyniyi O. (2006) “ creating opportunities for the Rural poor through microfinance programme.
StudentsandScholarship Team.
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