Microfinance Bank Influence on Incidences Of Poverty Reduction Among Rural Community in Oyo State, Nigeria

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 9

Year of Publication : 2019

Authors : OLADIPO, OluwaseyiTemilade

10.14445/23939125/IJEMS-V6I9P120

How to Cite?

OLADIPO, OluwaseyiTemilade, "Microfinance Bank Influence on Incidences Of Poverty Reduction Among Rural Community in Oyo State, Nigeria," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 9, pp. 151-160, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I9P120

Abstract:

The role played by microfinance bank in reducing poverty amidst communities cannot be overemphasized especially in developing country like Nigeria and this prompted this study to examine microfinance bank influence on incidence of poverty reduction among rural community in Oyo State. This study was carried out in Oyo State. The population of the study included the beneficiaries of microfinance banks from each of the Local Government areas of three Senatorial Districts of Oyo State which are villagers, artians, petty traders, low income group and those that had benefited or would benefit from the activities of the chosen microfinance banks. A total number of 250 respondents were selected randomly from the study area. Data were sourced from both descriptive and inferential statistics. The study was analyzed using regression analysis. The result of the study showed that: There is a relationship between microfinance banks and incidence of poverty in the study area. With correlation value r = -0.500 and p – value of 0.006 which is less than 0.05 confidence value. It is observed that there is negative significant relationship. Moreso, there is variation on incidence of poverty across the senatorial districts of the study area with the highest of incidence of poverty in Oyo North senatorial districts (53.3%) and least in Oyo South senatorial districts (20.7%). Conclusions were made that: there were some constraints militating against microfinance banks in reduction of poverty in the study area these were illiteracy among the rural communities, inadequate bank personnel, default in repayment of loans, high operating cost and inadequate monitoring by banks officers in the study area. It was recommended that massive information/ educational drive on importance of microfinance in fighting widespread of poverty should be launched in the study area, for as the saying goes “knowledge is power”. If the poor are to ever come out of their poverty in the study area, they need to be adequately informed and given the chance to determine their risk taking and create wealth for themselves. This study will be an insight for making effective decisions among government and non-governmental parastatals.

Keywords:

Poverty, Poverty reduction, Poverty incidence, Microfinance bank, Loan, Rural

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