Microfinance Bank: A Catalyst to Poverty Reduction in Nigeria. (A case Study of Oyo State) (original) (raw)

2011, Asian Journal of African Studies

This study was based on Microfinance Banks as a catalyst for poverty alleviation in Oyo State. The study examines the following specific objectives: the impact of microfinance on poverty alleviation and household income; identifying the beneficiaries of microfinance banks' credit, and assessing if microfinance banks have brought about an increase in the number of the informal sectors and micro enterprises in Oyo state. A sample size of 1000 respondents was randomly selected from five local government areas in Oyo State. Two questionnaires were designed to request information from customers and the management of microfinance banks in the study areas. All hypotheses were tested at a 0.05 significance level. The result of the findings revealed that microfinance has positively impacted the informal sector in terms of accessibility to microcredit, household income, asset acquisition and empowerment. The study concludes that microfinance banks use the supply of capital as loans which can be used for capital investment to lead to an increased income as a measure to reduce poverty

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