ISSN: 2225-8329
Open access
Interest in microfinance has soared in the recent time and the instrument is now seen as one of the most potent tools to tackle poverty in the developing countries. Nigeria with the worst poverty situation has therefore embraced the strategy. This paper has pictured microfinance as a financing strategy for poverty alleviation, and hence economic empowerment and emancipation of the poor in Nigeria, and the challenges it faces. The analyses contained in the paper are the results of a survey conducted by the researcher on twenty eight microfinance schemes operating in Zone ‘A’ Senatorial District of Benue State of Nigeria. The data collected were analyzed using simple percentages and the results revealed that, although microfinance schemes in the country have contributed to alleviating poverty, a myriad of problems still trails them. Prominent among them are inadequate funds and diversion of credit facilities by beneficiaries. Based on this, the paper suggested that government should beef up the schemes’ financial bases through soft lending. The schemes on their part should put in place adequate and functional arrangements that would ensure proper monitoring of beneficiaries to forestall diversion as well as ensure prompt loan repayment.
Anyanwu, C. M. (2004). “Microfinance Institutions in Nigeria: Policy; Practices and Potentials”. Paper Presented at the G$ Workshop. Retrieved on 23rdNovember, 2007.
http://www.microfinancegateway.com/content/articles/detail/3508
CBN. (2003), An Appraisal of Federal Government’s National Poverty Eradication Programme (NAPEP) published by the Research Department of the Central Bank of Nigeria, in Bullion: a publication of the CBN, January/March, 2003.
CBN. (2011), Microfinance Policy Framework for Nigeria.
Edoh, T. (2003). Poverty and Survival of Democracy in Nigeria; in Nigerian Journal of Political and Administrative Studies Vol. 1 No. 4 Benue State University, Makurdi, Department of Political Science.
Ehigiamusoe, G. (2008), the Role of Microfinance Institutions in the Economic Development of Nigeria. In the Bullion; a Publication of the CBN, Vol. 32, No. 1, January – March, 2008, p.17.
Eluhaiwe, P. N. (2005), Poverty Reduction through Micro financing: The case of India. Bullion; a Publication of the CBN, Vol. 30, No. 3.
Inaoloji, T. (2007), Poverty Alleviation through Deregulation: How Attainable?. Published in THISDAY News Paper, Wednesday, Vol. 9, No. 3160, December 17, 2007, page 62.
Kpakol, M. L. (2005). “The Role of Microfinance in Poverty Eradication”. In the Proceedings at the launching of the Microfinance Policy, Regulatory and Supervisory Framework for Nigeria and National Seminar to mark the International Micro-credit in Nigeria, with the theme: Enhancing the Microfinance sector for sustainable development in Nigeria. The policy, Stakeholders’ roles and responsibilities; CBN Publication.
Krishnaraj, M., and Kay, T. (2002), Empowering Women through self-help Microcredit Programmes; in Bullion on Asia-Pacific Perspectives, 2002/2003, p.70.
Oki, E. P. (2006), Current Issues in the Nigerian Economy. NEPAD, NEEDS and others. Institute of Chartered Accountants of Nigeria (ICAN) Students’ Journal 10 (1).
Olaitan, M. A. (2005). Poverty Reduction through Micro financing: The case of Pakistan. Bullion; a Publication of the CBN, Vol. 30, No. 3.
Serageldin, I., and Yunus, M. (2000). Empowerment will always triumph charity. Poverty: Micro-credit organizations must reach the poorest of the poor to truly make a difference. The Los Angeles Times. Friday, June 30. Retrieved on 23rd November, 2007. http://www.microcreditsummit.org/laoped.html.
Sobhan, R. (2001), Eradicating Rural Poverty: moving from a Micro to Macro Policy Agenda; an address delivered as part of the Public Lecture series on Rural Poverty Eradication organized by IFAD, in collaboration with FAO and EFP. Retrieved on 5th August, 2005. www.cpd-bangladesh.org.
Ukeje, U. E. (2005). Poverty Reduction through Micro financing: The case of Uganda. Bullion; a Publication of the CBN, Vol.30, No.3.
Ukwu, I. U. (2002). Towards Effective Poverty Eradication Strategies in Nigeria. Bullion; a Publication of the CBN, Vol. 26, No. 2.
In-Text Citation: (Iorun, 2012)
To Cite this Article: Iorun, J. I. (2012). Microfinance as a Panacea for Economic Empowerment of the Poor in Nigeria. International Journal of Academic Research in Accounting Finance and Management Sciences, 2(4), 286–299.
Copyright: © 2021 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode