IMPACT OF MICRO-CREDIT ON POVERTY REDUCTION IN NIGERIA

Marius N. Ugochukwu, Godwin Onochie

Abstract


This paper attempts to assess the impact of micro credit on poverty reduction in Nigeria. Poverty reduction and socio-economic development could be a direct measure for real development. The fight against poverty in Nigeria has been and is still being fought from so many fronts. Among one of the fronts is the area of micro credits from profit and non profit institutions. So many efforts have been and are being made by private and public sectors in the fight' against povertythrough micro credit financing.   The literature review done in this study has shown that Nigeria have been dogged in its fights against poverty through financing. Using the method of OLS regression analysis, the researcher embarked an empirical work to test the impact of micro finance activities on  poverty  reduction. The result showed the expected negative relationship between micro finance lending and poverty. However, the regression result and analysis have shown that there is a lot of room for improvement. The impact of micro financing on poverty reduction is still low and not significant in wiping out poverty from our land. Therefore, there is need to increase infrastructural and basic services provision for the citizens of Nigeria; and to create a friendly investment environment that will enable and attract micro enterprises and small and medium scale establishments.

Keywords


Impact, micro Credit, poverty Reduction and Socio-economic development

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References


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