Microfinance Interventions and Income Generation among Customers of LAPO and NPF Microfinance Banks in Abuja, Nigeria

Odili Markanthony Iwuozor, Glory Edem Ekaette and Ayasal Anthony Auya
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Odili Markanthony Iwuozor: African University of Science and Technology, kM 10 Umaru Musa Yar’ adua Road Galadimawa, Galadima, 900107 Federal Capital Territory, Abuja.
Glory Edem Ekaette: Business Administration Department, University of Abuja, Abuja, Nigeria,
Ayasal Anthony Auya: Business Administration Department, University of Abuja, Abuja, Nigeria,

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 233-243

Abstract: This study examined the impact of microfinance interventions on income generation among customers of LAPO and NPF Microfinance Banks in Abuja, Nigeria. A survey research design was employed, with a total sample of 686 respondents drawn from a population of 9,063 using the Taro Yamane formula. Purposive sampling was used to target clients who had participated in microfinance intervention programs. Data collection involved structured questionnaires and interviews, with a validated instrument tested for reliability using Cronbach’s Alpha (α > 0.9). Data analysis was conducted using multiple regression via the Ordinary Least Squares (OLS) method to evaluate the effect of six microfinance components group lending, targeting women, loans, interest rates, savings, and non-financial services on income generation. Findings revealed that group lending, targeting women, and loan provision had significant positive effects on income generation. Conversely, interest rates, savings, and non-financial services showed no statistically significant impact. These findings underscore the effectiveness of inclusive lending models and women-focused financial interventions in enhancing income. The study concludes that tailored microfinance strategies that prioritize accessible credit and community-based lending can significantly drive income growth and reduce poverty. It recommends a strategic redesign of microfinance programs to align financial and non-financial services with the economic realities of beneficiaries.

Date: 2025
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