Impact of Micro-Credit Programmes On Poverty Reduction in Yobe State, Nigeria

Abstract

This study attempted to examine the impact of micro-credits on poverty reduction and its determinants in Yobe state, Nigeria. The study employs a multi-stage random sampling techniques to selects 450 respondents from the three (3) senatorial zones: zone A (Yobe East), Zone B (Yobe South) and Zone C (Yobe North). But it was only three hundred and seventy-two (372) questionnaires were retrieved and subjected to analysis. The study used descriptive statistics, and Logistic regression Model for analysis. The findings reveals that micro-credits supply is statistically significant in reducing poverty level in Yobe State with 77.96% level. The result of logistic model showed that household size, educational status, investment and source of water are significantly associated with micro-credits supply in the study area, while age of the household head, gender, house ownership status, assets ownership status and monthly incomes are those factors inversely related with micro-credits in the study area. The study recommends among others that the government should promote stable macroeconomic environment as no meaningful development would be achieved without it, government should also not renege in any of the promises packaged in Micro-Finance Policy Framework and the establishment of more microfinance banks in all the communities in Yobe state and Nigeria by extension.This study attempted to examine the impact of micro-credits on poverty reduction and its determinants in Yobe state, Nigeria. The study employs a multi-stage random sampling techniques to selects 450 respondents from the three (3) senatorial zones: zone A (Yobe East), Zone B (Yobe South) and Zone C (Yobe North). But it was only three hundred and seventy-two (372) questionnaires were retrieved and subjected to analysis. The study used descriptive statistics, and Logistic regression Model for analysis. The findings reveals that micro-credits supply is statistically significant in reducing poverty level in Yobe State with 77.96% level. The result of logistic model showed that household size, educational status, investment and source of water are significantly associated with micro-credits supply in the study area, while age of the household head, gender, house ownership status, assets ownership status and monthly incomes are those factors inversely related with micro-credits in the study area. The study recommends among others that the government should promote stable macroeconomic environment as no meaningful development would be achieved without it, government should also not renege in any of the promises packaged in Micro-Finance Policy Framework and the establishment of more microfinance banks in all the communities in Yobe state and Nigeria by extension.This study attempted to examine the impact of micro-credits on poverty reduction and its determinants in Yobe state, Nigeria. The study employs a multi-stage random sampling techniques to selects 450 respondents from the three (3) senatorial zones: zone A (Yobe East), Zone B (Yobe South) and Zone C (Yobe North). But it was only three hundred and seventy-two (372) questionnaires were retrieved and subjected to analysis. The study used descriptive statistics, and Logistic regression Model for analysis. The findings reveals that micro-credits supply is statistically significant in reducing poverty level in Yobe State with 77.96% level. The result of logistic model showed that household size, educational status, investment and source of water are significantly associated with micro-credits supply in the study area, while age of the household head, gender, house ownership status, assets ownership status and monthly incomes are those factors inversely related with micro-credits in the study area. The study recommends among others that the government should promote stable macroeconomic environment as no meaningful development would be achieved without it, government should also not renege in any of the promises packaged in Micro-Finance Policy Framework and the establishment of more microfinance banks in all the communities in Yobe state and Nigeria by extension.