MICRO FINANCE AS AN EFFECTIVE TOOL FOR POVERTY ALLEVIATION IN NIGERIAMICRO FINANCE AS AN EFFECTIVE TOOL FOR POVERTY ALLEVIATION IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)
ABSTRACT
This study examined the effect of micro finance as an effective tool for poverty alleviation in Nigeria. There has been an intensified and concerted effort by the government to eradicate poverty in the nation and international level because of the poor standard of living in the country. It is a very big problem in the society that needs to be addressed by the government. This work is aimed to know the reasons while the governments have not able to eradicate poverty in the society.
The study was conducted in integrated micro finance bank (IMFB) with 200 respondents. Data were collected from the respondents by the use of questionnaire method. These respondents were chosen by simple random method which comprises of both male and female youths, the data collected were analyzed using percentage while chi-square technique was used to test hypothesis.
The findings of this study reveal that the micro finance institutions change interest rate as high as up to 100% of lending and pay as low as 5% of savings. This aggregate the existing inequality in the distribution of wealth and income in Nigeria.
In conclusion; micro finance as an effective tool for poverty alleviation has gone a long way to help eradicate poverty in Nigeria. The study therefore recommends that both individual and government should employ qualities and skilled staff so as to enhance the achievement of both organizational and economic goals.
CHAPTER ONE
1.1 INTRODUCTION
Today widespread poverty is one of the major problems of mankind and its alleviation one of her major agendas. In recent years micro finance has emerged as an important instrument to relieve poverty in the developing countries.
Today there are more than 700 micro lending institution providing loans to more than 25 million poor individuals across the world, their vast majority being the women. However, these institutions face some serious challenges, especially in less developed countries where the proportion of people in poverty is high. The existing microfinance in Nigeria serves less than 1 million people out of 40 million being the potential number that need the service. Also, the aggregate micro credit facilities in Nigeria account for about 0.2 percent of the GDP and is less than one percent of total credit in the economy. Addressing this situation inadequately would further accentuate the problem and slow down growth and development of the country.
We find that the microfinance institutions charge interest rate as high as up to 100% for lending and pay as low as 5% of savings. This aggravates the existing inequalities in the distribution of wealth and income in Nigeria.
Finally, Nigeria being a country thirty for rapid development and economic growth encourages the creation and availability of micro finance institutions so as to encourage these (people masses) considered unbanked by the commercial banks to participate in the economic activities. Thus, encouraging economic growth and development.
