THE PERFORMANCE OF MICROFINANCE PROVIDERS ON POVERTY ALLEVIATION AMONG YAM FARM HOUSEHOLDS IN SELECTED LOCAL GOVERNMENT AREAS OF NIGER STATE, NIGERIA.

Abstract

Abstract The study examined the performance of Microfinance providers on poverty alleviation among yam farm household in some selected Local Government Areas of Niger State, Nigeria. Multi-stage sampling technique was used to draw up respondents for the survey. Primary data were collected from 120 respondents using structured questionnaire accompanied by interview schedule. Data were analyzed using descriptive statistics, poverty gap index, Foster-Greer-Thorbeck index, head count ratio, severity index, farm budget technique, and Gini coefficient. The result of the analysis revealed that most yam farm household (89.17%) were males and mostly were married (87.50%). The average age of the respondents was 37.83years. 75% of the respondents were also into poultry farming. Similarly, 44.17% of the respondents obtain credit from commercial banks while 30.83% obtained credit from microfinance banks. Average income of the respondents before and after the loan was N38, 401.04 and N83, 329.21 respectively. The result of the analysis also revealed that credit has had positive impact on the livelihood of the respondents in the area. However, the result of the Gini coefficient (0.6631) shows that there is inequality in income distribution among the respondents in the area. The study therefore, recommended that additional microcredit providers be established in the study area to increase its impact among the respondents especially in poverty alleviation. Also, it was suggested that integrated community development effort should be encouraged to provide rural infrastructures in the study area.