Institutional Environment and Access to Microfinance by Self-employed Women in Rural Areas of Chanchaga Local Government Area, Niger State, Nigeria.

Abstract

This study investigated the extent to which microfinance services reach women and its impact on the self-employed. The study also examined the institutional environment in which MFIs function and identify the characteristics of MFIs which enhance their ability to contribute to poverty reduction of women client. The primary data was obtained through structured questionnaire administered to 75 respondents in the area. Similarly 15 MFIs were also selected and data collected from their managers. Data were analyzed using descriptive statistics and regression analysis. The results of the analysis show that most of the respondents were married (82.67%) and had acquired some education (82.66%). Further analysis of the result shows that the size of the loan benefitted by respondents ranges from N31,000-N50,000 however, only 13% of the clients obtain a loan of N100,000 and above. In addition the loan facility had positive impact on the businesses of the client. Many of them that are farmers no longer have to purchase inputs on credits or go into forced selling of their products, and this has improved their income status as well as their standard of living. It was therefore recommended that more MFIs be established in the area with more capital (funds) provided to enable them expand their loan facility and target more women clients.