MICROFINANCE AND POVERTY ALLEVIATION: A CASE STUDY OF AHMADU BELLO UNIVERSITY MICROFINANCE BANK (A.B.U. MFB) , ZARIA.
MICROFINANCE AND POVERTY ALLEVIATION: A CASE STUDY OF AHMADU BELLO UNIVERSITY MICROFINANCE BANK (A.B.U. MFB) , ZARIA.
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Date
2011-07
Authors
DARI, DANRAKA N.
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Abstract
Poverty has such an adverse effect that those under it remain trapped in a vicious circle
because access to basic necessities of life is lacking or inadequate. The antipoverty
programmes of the federal government were targeted at the rural and urban poor with
emphasis on women and unemployed youth. The intervention took the form of the provision of
basic infrastructures to facilitate rural development as well as provision of credit facilities to
improve the lot of the underprivileged by encouraging micro-enterprises in the cities and
training programmes for the unemployed youths. This was done because it was realized that
Structural Adjustment policies did not achieve steady economic growth and poverty has
become more acute as evident among the rural and urban dwellers. The objective of this
study was to examine the impact of microfinance banks on poverty alleviation using the
Ahmadu Bello University microfinance bank as case study. Both primary and secondary data
were collected and used. Also, descriptive statistics were used. The results showed that
microfinance banks enhanced rural and urban development; there was improved savings
mobilization which improved credit facilities which in turn improved the lot of the rural and
urban dwellers by the larger output from micro-enterprises. Data were analyzed by the use of
simple percentage and Chi-square statistics. It was found that microfinance banks
contributed to poverty reduction. It was concluded that Ahmadu Bello University
Microfinance Bank charges high interest rate because of their incapacity to mobilize its funds
from the local community but rather borrowing from other banks; thus this has continued to
undermine the contribution of microfinance banks to poverty reduction. More study on the
design, effects and effectiveness of these antipoverty banks are needed.
Description
AN M.Sc THESIS SUBMITTED TO THE DEPARTMENT OF ECONOMICS, AHMADU
BELLO UNIVERSITY, ZARIA
Keywords
MICROFINANCE,, POVERTY ALLEVIATION,, AHMADU BELLO UNIVERSITY MICROFINANCE BANK