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Impact of Microfinance on Poverty Alleviation in Nigeria

Isibor Areghan PhD, Abegunde Luke Omolere, Onyeka-Iheme Chimeruo Victory (PhD), Ademola R. Adediran

Abstract

Poverty leads to the denial of all human rights and poses a threat to peace. Microfinance emerged across the globe to reduce poverty in the early 1970s, invented by Professor Muhammad Yunus, an economist. The effect of microfinance in reducing poverty is constantly questioned, despite its substantial contribution to aiding the underprivileged globally. To address this pressing issue, this study investigates the relationship between microfinance and poverty alleviation, as well as the impact of microfinance on poverty alleviation. Using an empirical case study, this paper investigates how far microfinance institutions play a significant role in relieving poverty. Although there are certain issues with its operation, according to our research findings, the study concludes that microfinance can make a significant contribution to alleviating poverty in rural areas. The study also advises that this organization should pay more attention to the diverse needs of the poor, particularly the severely poor.

Keywords

MicrofinanceMicrofinance InstitutionMillennium Development GoalsNon-Governmental OrganizationPoverty Alleviation

References

Lashley, 2004; Khandaker & Uddin, 2011; Isibor and Emeje (2025); Nahesh (2018); Hossain (2002); Christen et al., 2003; Copenhagen Declaration; Scottish Poverty Information Unit; World Bank Organization; Sen (1995, cited in Khawari, 2004); Khawari, 2004; Aghion and Morduch, 2000; Hossain and Rahman, 2001; Mayoux, 1999; Simanowitz et al., 2000; Datta, 2004; Sharma, 2001; Pitt and Khandker, 1998; Moll, 2005; Khandker's (2005); Nobel Peace Prize (2006); Mallick, 2002; Hasan, 2003; Littlefield et al. (2003); UN Millennium Project (2005); Yaron, 1992; Jain 1996; Zaman, 2000; Morduch, 1999; Wahid (1994)

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