Microfinance as a Panacea for Economic Empowerment of the Poor in Nigeria

Justin Iorakpen Iorun ()
Additional contact information
Justin Iorakpen Iorun: Benue State University

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2012, vol. 2, issue 4, 238-250

Abstract: Interest in microfinance has soared in the recent time and the instrument is now seen as one of the most potent tools to tackle poverty in the developing countries. Nigeria with the worst poverty situation has therefore embraced the strategy. This paper has pictured microfinance as a financing strategy for poverty alleviation, and hence economic empowerment and emancipation of the poor in Nigeria, and the challenges it faces. The analyses contained in the paper are the results of a survey conducted by the researcher on twenty eight microfinance schemes operating in Zone ‘A’ Senatorial District of Benue State of Nigeria. The data collected were analyzed using simple percentages and the results revealed that, although microfinance schemes in the country have contributed to alleviating poverty, a myriad of problems still trails them. Prominent among them are inadequate funds and diversion of credit facilities by beneficiaries. Based on this, the paper suggested that government should beef up the schemes’ financial bases through soft lending. The schemes on their part should put in place adequate and functional arrangements that would ensure proper monitoring of beneficiaries to forestall diversion as well as ensure prompt loan repayment.

Keywords: Microfinance; Poverty alleviation; Economic empowerment; Benue State; Nigeria (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2012
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.hrmars.com/admin/pics/1290.pdf (application/pdf)
http://www.hrmars.com/admin/pics/1290.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:2:y:2012:i:4:p:238-250

Access Statistics for this article

More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().