Impact of microfinance institutions’ microcredit program on poverty alleviation through agricultural finance intermediation to maize farmers in Niger State, Nigeria.

Abstract

The study examined the impact of micro-credit facility of MFIs on Maize farmers in Niger State, Nigeria. To achieve the stated objectives of the study, 144 maize farmers who are beneficiaries of MFIs credit facility were drawn through multi-stage sampling technique. Both primary and secondary data were used in the study. The primary data was collected using well structured questionnaires accompanied with interview schedules. Information were collected on socio-economics, types of cropping system, inputs usage and output obtained during the 2Q09/2010 farming season. Data were analysed using descriptive statistics like the percentages, frequency tables means, etc. The result of the analysis shows that most of the maize farmers who are MFI clients were mostly women (67.4%) and of middle - age (41.12years). They have family sizes averaging 8 people. Most of the beneficiaries had modern education (70%). On the impact of micro-credit loan, the facility has had a positive impact on the beneficiaries in terms of increased income, better nutrition and health status, empowerment of women etc. Some of the constraints faced by the MFBs in the area include poor rural infrastructure, limited capital to increase volume of coverage, lack of trained manpower etc. To enhance performance of MFIs in the study area, it was recommended that more of these financial institutions be established in the area, more infrastructural facilities should be provided among others.