Poverty Alleviation Through Micro Financing in Nigeria: Prospects and Challenges

Journal of Financial Management and Analysis, Vol. 23, No. 1, January-June 2010

Posted: 10 Oct 2010  

Joseph E. Imhanlahimi

University of Benin

Eseoghene Joseph Idolor

University of Benin - Department of Banking and Finance

Date Written: June 4, 2010

Abstract

This study takes a critical look at the recent micro finance policy and attempts by the Nigerian government to encourage private sector-led establishment of micro finance banks (MFBs) as a potent means of poverty alleviation. The objectives of the study are to examine the inherent strengths and limitations, and proffer solutions. The methodology adopted is a clarification of extant concepts, explication of rationale for the government’s policy, and a brief review of the development of micro financing in Nigeria. It also involved a critical analysis of the dominant issues in the policy. The study identified vital constraints to the policy as including weak infrastructures and fraudulent persons in the process. Some of the recommendations to improve the success of micro financing to reduce poverty in Nigeria are more efforts at institutionalization of MFBs and financial liberalization. Others include the provision of adequate infrastructures such as functional roads and electricity especially in the rural areas.

Keywords: Poverty Alleviation, Micro Finance, Nigeria

JEL Classification: G21, I32, N27

Suggested Citation

Imhanlahimi, Joseph E. and Idolor, Eseoghene Joseph, Poverty Alleviation Through Micro Financing in Nigeria: Prospects and Challenges (June 4, 2010). Journal of Financial Management and Analysis, Vol. 23, No. 1, January-June 2010 . Available at SSRN: https://ssrn.com/abstract=1689893

Joseph E. Imhanlahimi

University of Benin ( email )

Benin City, EDO State
Nigeria

Eseoghene Joseph Idolor (Contact Author)

University of Benin - Department of Banking and Finance ( email )

Benin City
Nigeria

Register to save articles to
your library

Register

Paper statistics

Abstract Views
579
PlumX