MICRO-FINANCIG: AN EFFECTIVE POLICY TOOL FOR POVERTY ALLEVIATION IN NIGERIA IN THE COVID-19 ERA
Abstract
The study examined the contributive role of micro- financing in alleviating the improvised state of the Nigerian economy with specific focus on the Covid-19 era. The study focused on Small and Medium Scale Entrepreneurs in Delta State, Nigeria. The regressor is Micro-financing proxied by provision of micro-credits and easy access to micro-credits, credit mobilization, co-operative society financing, and government transfer payments while the regressand is poverty alleviation.. The study adopted the survey research design with data derived from specially designed questionnaires, administered to a total of 385 SMEs operators who are beneficiaries of the Delta State Micro, Small and Medium Enterprises Development Agency across the 25 local government areas of the state. Regression analysis was used for test of hypothesis and it was discovered that provision of micro-credits and easy access to micro-credits have favourable impacts on poverty alleviation in Delta State. However, credit mobilization, co-operative society financing, and government transfer payments had insignificant impacts on poverty alleviation. Hence, the study concludes that provision and access to micro-credits act as catalyst for poverty alleviation in Delta State, Nigeria especially in the Covid-19 era. Hence, the study suggests that there is need Micro finance institutions to establish appropriate structure for accessing micro-credits. More so, both the state and federal government should ensure that soft loans which they grant to the unreached masses are sustainable. This will in turn reduce the current poverty rate inherent in the country.
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Published in AFRICAN JOURNAL OF MANAGEMENT, BUSINESS ADMINISTRATION & ENTREPRENEURSHIP
ISSN: 2805 - 4237
This article appears in our peer-reviewed academic journal
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