IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 1 2024
DOI: https://doi.org/10.56201/ijefm.v9.no1.2024.pg108.119

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The Informal Financial Institutions and Poverty Reduction in Nigeria

Okere, Peter Anele PhD, Adioha, Ndubuisi Francis, Akpelu, Azunna E

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Abstract

This study investigated the relationship between informal financial institutions and poverty reduction in Nigeria. The study adopted a descriptive survey method comprising a sample of 267 respondents from Owerri North and Owerri West Local Government councils of Imo state. Data were sourced using structured questionnaire and analysed using simple percentage and descriptive statistics. Findings revealed that informal financial institutions have positively influenced poverty reduction in Nigeria. The study therefore recommends that collaboration is more optimal needle-moving strategy between the formal and informal financial institutions and this will ensure sustainable financial inclusion in Nigeria. The informal providers are a lucrative vertical for the formal financial service sector because they have already done a lot of the heavy lifting of financial inclusion. Again, there is urgent need for government to utilize the informal financial institutions in its poverty alleviation programmes most especially in this COVID-19 period

keywords:

informal financial Institutions, Financial inclusion, Poverty Reduction

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References:

Adamu, G. (2007), Role of Microfinance Institutions in Actualization of MDGs.
Paper delivered at the induction ceremony of Institute of Chartered Economists of
Nigeria (ICEN) in Port Harcourt.

Ademola A.O, Adegoke K.A and Adegboyegun A.E.( 2019) Nexus between
Informal Financial Institutions (IFIs) and Performance of Women Entrepreneurs in
Nigeria. Saudi Journal of Economics and Finance, Journal homepage:
http://saudijournals.com/sjef/.

Akintoye, I.R. (2008) Reducing Unemployment through the Informal Sector: A Case Study of
Nigeria. European Journal of Economic and Administrative Sciences, 11, 97-106.

Anyanwu G.I., Okere P.A and Adioha N.F(2020)Effects of Financial Dualism and
Inclusion on Economic Development in Nigeria. Asian Journal of Economics, Business
and Accounting, Page 1-13

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