Microfinance as a policy tool for poverty alleviation

In carrying out this research work, information will be obtained from the case study; Integrated Microfinance Bank IMFB on Microfinance bank as an effective tool for poverty eradication in Nigeria.

Secondly, the questionnaire method of data collection will be use in the acquisition of information from the case study. Thirdly, the chi-square method of data analysis will be used to analyse the questionnaire acquired so as to provide adequate interpretation to the research work. Finally, possible recommendations will be given or enhanced to tackling or combating the constraints or problems faced by the Microfinance institutions to effective microfinance services delivery in Nigeria.

Micro finance: Integrated Micro finance Bank IMFB P1c was incorporated as a wholly indigenous microfinance bank following the grant of an approval-in-principle by the Central Bank of Nigeria CBN on issuing of operating license as the first micro finance bank in Nigeria on September 2, and possessing dividend of million ordinary shares ofN1. The authorized share capital of N26 billion to accommodate the teeming high net worth of individuals yearning was acquired. Promoters of the bank comprised seasoned and tested Nigerians of integrity and their primary goal is to bank the unbanked, less-banked Micro customers and to take customers to their businesses through the provision of efficient financial services integrating the informal sector into the mainstream financial system.

Monetary policy: G. Shaw Jhingan, M. It is the highest monetary authority in Nigeria. Finance : Finance is the livelihood of any enterprise. GDP : Gross Domestic Product: It can be defined as the total monetary value of all goods and services produced within an economy during a given period of times usually one year.

Chapter one is the introductory parts. Chapter two will be the literature review. Chapter three is theoretical framework. Chapter four is research methodology, data analysis and interpretation of results. While chapter five shall contain the summary, conclusion and recommendation.

To examine the impact of microfinance bank on poverty alleviation. To evaluate the effect of small-scale enterprises on poverty alleviation. It also provides an insight into the evolution of microfinance, specifically as framed by the global development discourse and subsequent public policy choices.

Finally, the study provides an authoritative account of how institutional structure affects microfinance's effectiveness as a tool for poverty alleviation, empowerment and financial access. Graduate Doctoral Dissertations. Advanced Search. This is mostly attributed to the high rate of poverty in the country which makes borrowers divert loans into other areas such as feeding, payment of bills, school fees, hospital bills and other pressing issues instead of using it for the intended business purpose which would have in the long run created an avenue for the repayment of the loan and also provided for the pressing needs of the household.

Micro financing still has some important gaps to fill in order to achieve the desired credit delivery to the upcoming entrepreneurs, small scale enterprises and the active poor in order to boost the employment rate ameliorate poverty. The specific objectives include the following:. The associated research hypotheses are as follow: a Ho: MFBs have not been potent instruments in the dispersion of credit among the working poor in Nigeria Hi: MFBs have been potent instruments in the mobilization and dispersion of credit among the working poor in Nigeria b Ho: Microfinance Institutions have not successfully helped the poor to improve their standard of living.

Hi: Microfinance Institutions have successfully helped the poor to improve their standard of living. Poverty is pervasive in our society and attempts at alleviate it have not yielded the desired results. Therefore, it is necessary to review the severity of poverty in the country with a view to assessing how microfinance institutions could help to reduce the incidence.

The study is also relevant for researchers who would like to carry out more studies on the subject. It is also relevant to policy makers, microfinance banks and clients of microfinance banks.

The study targets the customers of MFIs between the ages of 18 and 60 who are gainfully employed and can repay loans. It has been discovered that the ability of women to borrow, save and earn income has enhanced their confidence and they are more able to confront other systemic inequalities Little Field, Morduch and Hashemi, However, the study is limited to local Microfinance institutions and how they constitute effective strategies for poverty alleviation and economic development in Nigeria.

All undertaking works, records and reports posted on this website, modishproject. Use it as a guide and not to duplicate the work in exactly the same words verbatim. The paid membership on modishproject. We will answer to and honor each solicitation. The major factor account for high incidence of rural poverty is the low asset base. Rural people have very low access to institutionalized credit from commercial bank.

The Paper attempts to analyze that role of microfinance in poverty alleviation, Highlights of Micro-Finance Bill and Stumbling blocks of microfinance institutions. Research and development sector in our country brings number strategies in favour of these people every year. Implementation of these technologies in the rural sector can alleviate poverty, create employment opportunities and generate good growth. However, for implementing these technologies micro financing through public and private sector agencies is the need of the hour.

Microfinance can be a critical element of an effective poverty reduction strategy. Improved access and efficient provision of savings, credit, and insurance facilities enable the poor to smoothen their consumption, manage their risks better, build their assets gradually and develop their micro enterprises.

Government, NGOs and other financial institutions have introduced various welfare schemes and activities to reduce poverty. Microfinance, by providing small loans and savings facilities to those who are excluded from commercial financial services has been developed as a key strategy for reducing poverty throughout the world.

In India, a substantial microfinance system based on self help groups SHGs was developed. It allows poor people to protect, diversify and increase their sources of income, the essential path out of poverty and hunger. As a developmental and economic tool it has caught the imagination of banks, financial institutions and NGOs in India.

Data have been collected through the websites, research paper, Journals and magazines. Channels of Microfinance [1]. Different legal forms under which MF can be provided in India 1. Commercial Banks 2. Cooperative Banks 3. Societies 7. Trusts 8. There is no centralized database on the number of microfinance institutions that operate in the country. Microfinance is an experimental tool in its overall strategies. Most of poor people manage to optimize resources over a time to develop their enterprises.

Financial services could enable the poor to leverage their initiative, accelerating the process of generating incomes, assets and economic security. However, conventional finance institutions seldom lend down-market to serve the needs of low-income families and women-headed households.

Therefore fundamental approach is to create the self employment by financing the rural poor through financial institutions. Microfinance, thus, creates the hope and increases the self- esteem of the poor by giving the opportunities to be employed.