IMPACT OF THE MICRO CREDIT SCHEME OF THE BANK OF AGRICULTURE ON THE LESS PRIVILEGED GROUPS IN BORNO STATE, NIGERIA
IMPACT OF THE MICRO CREDIT SCHEME OF THE BANK OF AGRICULTURE ON THE LESS PRIVILEGED GROUPS IN BORNO STATE, NIGERIA
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Date
2015-12
Authors
UBA, Isaac Andiyawa
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Abstract
This research was aimed at examining the impact of the micro credit scheme of the BOA on the living conditions of the less privileged groups in Borno state and with a view to identify the areas of shortcomings and challenges. The objectives of the study include determining whether the intended target groups of the BOA have actually been reached; the influence of the micro credit investment inputs on the living standard of the targeted groups; and the extent to which human capacity building of the target groups have been achieved. Ten Local Government Areas were sampled out of the sixteen where the BOA micro credit actually exists in Borno state. The ten Local Government Areas have a total of 1099 micro credit beneficiaries, out of which 164 were selected through a purposive sampling technique for the study. The findings revealed that the less privileged groups reached with the micro credit were characterised more by social impediments than by physical impediments. The study also established that the information about BOA micro credit and its innovations were disseminated largely through personal contacts with friends, neighbours and relations. The micro loans actually given were all in cash and ranged between a minimum of =N=26,000.00 to a maximum of =N=200,000.00. Generally larger number of the borrowers collected lower amounts. Agricultural projects claimed the larger portion of the borrowers‘ investments than the non-agricultural projects. Chi-Square tests were used to test the mean differences of the living standard at statistical levels of significance p- 0.05. The results of the analyses have rejected the null- hypotheses. Factor Analysis Principal Components Extraction with Varimax Rotation was used to evaluate the effects of the micro credit investment inputs on the living standard variables set at statistical level of significance p- 0.5. The results showed all the rotated component matrix loaded above 0.5 and hence rejected the null-hypothesis. Chi-Square tests were also used to test the mean differences between the human capacity of the beneficiaries before and during the utilization of the loans at statistical levels of significance p- 0.05. The results of the analyses also rejected the null- hypotheses. Conclusive statement was drawn that the less privileged groups reached with the micro credit were empowered to begin pulling themselves out of poverty as recorded in improvement in their living standard during access to the BOA micro credit. It is recommended for other studies to be conducted in the area to assess the population of the existing less privileged groups; another to determine the extent to which the micro credit scheme of the BOA has reduced rural urban migration; and examine the extent it has encouraged the formation of co-operative societies among the less privileged groups as other objectives of BOA stated. The study further recommends that government should open more BOA branches in Northern Borno. The Bank management should also include more of the backstopping services ascribed for application with micro credit and remove the initial deposit demanded to qualify a borrower. The micro credit range should also be reviewed further to a minimum of =N=50,000.00 and a maximum of =N=100,000.00, and include more of the safety-net packages to suite the least privileged groups.
Description
A THESIS SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, AHMADU BELLO UNIVERSITY ZARIA, IN PARTIAL FULFILLMENT FOR THE AWARD OF DOCTORATE DEGREE OF PHILOSOPHY (Ph.D) IN RURAL DEVELOPMENT DEPARTMENT OF GEOGRAPHY, FACULTY OF SCIENCE AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA
Keywords
IMPACT,, MICRO CREDIT SCHEME,, BANK,, AGRICULTURE,, LESS PRIVILEGED,, BORNO STATE,, NIGERIA,