Indian Journal of Economics and Development

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Lifting the Poor in Nigeria:A Comparative Analyses of the Role of Microfinance Banks and Cooperatives


Affiliations
1 Department of Economics, McPherson University, Ogun State, Nigeria
 

Objectives: This study investigates the role of microfinance banks (MFBs) and cooperatives in lifting the poor in Nigeria.

Methods/Statistical analysis: Analyses are carried out in relation to how accessible and effective the two institutions’ loans. The study employs survey methodology where interview is used to generate data. The interview is conducted in Ibadan, the capital of Oyo state, and Abeokuta, the capital of Ogun State in South-western part of Nigeria. In all, 166 respondents provided the information used for this study. Simple averages and percentages are used for analysis.

Findings: Findings reveal that it is difficult for the poor to access MFBs’ loans, and loan effectiveness analyses show that only middle income and rich people can benefit from MFBs’ loans.However,cooperatives’ loans are found to be more accessible and effective to the poor.

Improvements/Applications: The results of this study have important implication for poverty reduction, thereby recommends that cooperatives movement should be encouraged inNigeria.


Keywords

Microfinance Banks, Cooperatives, Comparative Analysis, The Poor, Nigeria.
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  • Lifting the Poor in Nigeria:A Comparative Analyses of the Role of Microfinance Banks and Cooperatives

Abstract Views: 294  |  PDF Views: 166

Authors

Adeniyi Jimmy Adedokun
Department of Economics, McPherson University, Ogun State, Nigeria

Abstract


Objectives: This study investigates the role of microfinance banks (MFBs) and cooperatives in lifting the poor in Nigeria.

Methods/Statistical analysis: Analyses are carried out in relation to how accessible and effective the two institutions’ loans. The study employs survey methodology where interview is used to generate data. The interview is conducted in Ibadan, the capital of Oyo state, and Abeokuta, the capital of Ogun State in South-western part of Nigeria. In all, 166 respondents provided the information used for this study. Simple averages and percentages are used for analysis.

Findings: Findings reveal that it is difficult for the poor to access MFBs’ loans, and loan effectiveness analyses show that only middle income and rich people can benefit from MFBs’ loans.However,cooperatives’ loans are found to be more accessible and effective to the poor.

Improvements/Applications: The results of this study have important implication for poverty reduction, thereby recommends that cooperatives movement should be encouraged inNigeria.


Keywords


Microfinance Banks, Cooperatives, Comparative Analysis, The Poor, Nigeria.

References