IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 11 NO. 1 2025
DOI: 10.56201/ijbfr.vol.11.no1.2025.pg79.105

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Micro-Financing and Poverty Alleviation in Nigeria

Sirah Patience Barisua

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Abstract

This study examined the effects of micro finance activities on poverty alleviation in Nigeria from 2000-2023. The objective was to examine the effectiveness of micro finance functions in alleviating poverty. Annual time series data were sourced from Central Bank of Nigeria statistical bulletin. Multiple regression models were specifically estimated with the aid of Software Package for Social Sciences. The study modelled Nigerian poverty rate as the function of Microfinance credit as percentage of domestic credit, Microfinance deposits as percentage of total assets, Microfinance services proxy by micro insurance and Microfinance growth proxy by growth of number of microfinance banks in Nigeria. The correlation coefficient showed 96.5 percent which means the relationship between the dependent and the independent variable is strong of the variables to the dependent. The R2 proved that 93.1 percent variation in poverty rate can be explained by variation in the microfinance functions. The F-statistics and sig. T shows that the model is significant. The estimated regression model shows that with the positive value of 48.130 as constant and regression intercept, the independent variables in the study positively affects the dependent variable at constant. However, the negative coefficient of -354, -1.141, -.1.049 and -.955 as ? coefficient for microfinance credit, deposits, services and microfinance growth proved that increase in the variables will reduce poverty rate by 354, 1.14,1.04 and 955 percent over the periods of the study. The t-significant for microfinance credit is .076 which is greater than the critical value of 0.05, the study conclude that there is no significant relationship between micro credit and poverty alleviation. The t-significant for microfinance credit is.000 which is less than the critical value of 0.05, the study conclude that there is significant relationship between micro deposit and poverty allevia

keywords:

Micro-Financing, Poverty Alleviation, Nigeria

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