The study which was conducted in lfako ljaye Local government
area of Lagos state examined the
influence of micro credit on poverty
alleviation policy in Nigeria. The
study among other things
examined the importance Of small and medium enterprises in the development any given economy can not be over emphasized, hence,
the need to undertake this study it was equally the focus of this study
to examine the various ways that micro
credit could affect the investment decision on poverty alleviation policy of SMEs in carry out this study and for the
purpose of better understanding the historical
development of micro credit
usage financial institution and banking industry to eradication of poverty
alleviation policy in particular was also given in depth consideration.
The researcher made of a Secondary
data, although the use of micro credit on poverty alleviation policy in Nigeria economy
is an objective this research
The SMEs were categorized into
four namely: Bakery, Stationary Shop, Fashion Designer and petty trader, the
data use in the research work was generated from the central bank of Nigeria
bulletin and National Bureau statistic based on micro credit, poverty index and
level of investment between the periods of 1995 - 2010.
The results obtained were
analyzed through the use of a descriptive analysis and application software of (SPSS 17:00) which revealed micro credit is
an effective tool that show a significant
relationship between micro credit and poverty alleviations policy in Nigeria.
In conclusion the regression run for the hypothesis stating that there is significant relationships between micro credit and investment in Nigeria.
The study recommends a greater
coverage of the state by the scheme; Recipients should also be
encouraged to reinvest their profit in other productive economic activities.
TABLE OF CONTENTS
1.0 Background to the study
1.2 Statement of Research problem
1.3 Objective of the study
1.4 Conceptual framework of micro credit to
poverty alleviation policy
1.5 Research Questions
1.6 Research Hypothesis
1.7 Significance to the study
1.8 Scope of the study
1.9 Research Methodology
1.10 Type and source of Data
1.11 Plan of the study
2.0 Literature Review
2.2 Concept of micro credit
2.3 Micro loan
2.4 Micro credit fight extreme poverty
2.5 Your gift a micro credit is a non Tax
2.6 What sets micro credit apart from other
micro finance programs
2.7 Micro is brought to you by world vision
2.8 World vision has been servicing the poor
for six decades
2.9 The historical background of micro credit
3.0 Research Methodology and data Collection
3.2.1 Type and source of data
3.3 Research Design
3.4 Data Analysis
4.0 Data analysis and interpretation of results
4.2 Model Specification
4.3 Data presentation
4.4 Estimation of problem and interpretation of
5.0 Summary, Conclusion and Recommendations
5.2 Summary of Findings
1.1 BACKGROUND TO THE STUDY
The provision of micro credit
has been recognized as instrumental tool for reducing poverty by many
developing countries. From various
studies, micro credit programs have increased incomes and had other positive
effects such as gender empowerment, improved nutrition, higher educational
attainment and reduced consumption variability.
The human livelihood is
characterized by a sharp contrast of increasing disparity between the rich and
the poor. Poverty alleviation is thus
becoming one of the most important challenges faced by the policy makers of
many less developed countries. The
provision of financial services to low income households is believed to
eradicate poverty through the transformation of social and economic
infrastructures (Morduch, 2000).
However, there is partial
evidence and is contested that micro credit would make a larger contribution to
reduce poverty or promote small and micro enterprise development in most
developing countries as compared to investments in social and economic
It has remained persistently unabated
despite many laudable programmes designed to alleviate it. Moreover, the country ranked 142nd
in human development rating. Thus
poverty has become a major concern for development experts and international
agencies. The level and incidence of
poverty have been on the increase since the implementation of the Structural
Adjustment Programme (SAP) in the 1989s.
Report from UNDP (2010), Federal Office of Statistic (2001) and World Bank,
(2001) showed that the incidence of poverty rose from 28.1% in 1980 to 43.6% in
1985, and by 1996, it rose to 65.5%. As
far back as 1990, the UNDP, Human Development report described Nigeria as a
rich country with poor population and also as the poorest and most deprived
OPEC Country (UNDP, 2010). Moreover, the
country ranked 152nd in human development rating. Apart from the increase in the incidence of
poverty the population of the poor has been on the increase. Report from Federal office of statistic
(2001) revealed that the percentage of the core poor increased from 62% in 1980
to 93% in 1996 whereas, that of the moderately poor rose from 28.9 to 36.3%
within the same period. The depth and
severity of poverty can also be seen in the proportion of income spent on
consumption. The core and moderately
poor spent 75 and 73% of total income for consumption purpose, respectively,
while the non poor spent only 53% of total income on consumption.
This is more or less an
indication that the economy is still largely under developed.
It cannot be gain said that
poverty is the bane of rural development in development, standard of living and
efficiency and production of labour.
The rural areas are
characterized by social, economic, cultural, political and environmental
deprivation. Among other things; the
rural areas are plagued with vicious cycle of poverty, that is, low income, low
productivity, low saving, low capital formation, low investment and back to low
productivity. One of the most crucial
problems of rural development is lack of rural credit facilities from the
formal financial institution because of their inability to provide required
collateral securities. On the other
hand, credit facilities from the informal sectors are often accompanied with
high interest rates which make it unprofitable for the poor small holders. Therefore, the introduction of micro credit
in the rural areas will go a long way to break the vicious cycle of poverty and
hence accelerate the pace of development among the rural dwellers.
1.2 STATEMENT OF RESEARCH PROBLEM
For a meaningful development to
occur in the poverty alleviation operation theJ'11!t must be a gross increase
in building micro credit in order to expand business in the country. Micro
credit is one of the instrumental tools in the poverty alleviation operations that reduces operational cost and
thus increase competition in the small
and Medium Enterprises. The introduction of micro credit has brought about and
has lead to an increase in the poverty alleviation to attend to low capital
than ever. The problem therefore comes thus. How do we articulate the micro
credit as an important tool for increasing the
poverty alleviation ope1ation and can this lead to the expansion of small and medium scale enterprises in economy? This
exactly the reason that researcher would address in subsequent chapters.
1.3 OBJECTIVE OF THE
The purpose of the study is to review
the impact of micro credit on poverty alleviation in Nigeria the objective of
the study includes:
(i) To provide comprehensive information
on the process of acquisition availabilities and use of (IT) gadget in Nigerian
poverty alleviation policy in lfako Ijaye
(ii) To establish the advantage or
otherwise of the adoption of micro credit in the operation of poverty
alleviation policy in Nigeria.
(iii) To examine the effect of micro credit on the operation of
the Nigeria poverty alleviation policy.
1.4 CONCEPTUAL FRAMEWORK OF MICRO-CREDIT TO
POVERTY ALLEVIATION POLICY.
Into this environment, we
introduce micro credit. While being
agnostic about the underlying innovation behind micro credit, we view it as a
collateral free institutional loan to jointly liable poor member further self
employment and income generation. Since
we model economy wide micro credit, everyone has access to it in
principle. However, since the wealthy already
have access to financing beyond the micro credit
and micro finance limit, only the poor
who tend to have low poverty
alleviation productivity have their choice
set effectively expanded by micro credit.
However, micro credit may not include
other services such as saving, insurance. payment services.
1.5 RESEARCH QUESTIONS
The research work tends to ask the following
question in relation to the
effectiveness of micro credit in poverty alleviations policy.
(i) Will micro credit affect the performance
of poverty alleviation policy in Ifako Ijaye Local Government Area of Lagos State?
(ii) Will micro credit
has useful impact to play in poverty
alleviation policy in Ifako Ijaye local Government Area of Lagos State?
(iii) Will micro credit be essential tools
in enhancing poverty alleviation policy
in Ifako Ijaye Local Government Area of
often defined as supposition, a preposition assumed for the sake
of argument, a theory to be proved or disproved by
references to the facts, and a provisional expiration of
anything. Therefore, for the purpose
of this study the following hypothesis
will be tested to establish the impact of micro
credit on poverty alleviation policy.
Ho: There is no positive effect of micro
credit on poverty Alleviation Policy in Ifako Ijaye Local Government of Lagos State.
is positive effect of micro credit on poverty Alleviation Policy in Ifako Ijaye Local Government
of Lagos State.
Ho: There is no significance relationship
between micro credit and investment in Nigeria.
H1: There is significance relationship between
micro credit and investment in Nigeria.
1.7 SIGNIFICANCE OF THE STUDY
The emphasis of this project
will be base on the revolution impact of micro credit on poverty alleviation
policy operation in Ifako Ijaiye Local Government Area of Lagos State. This study is very significant because the
impact of micro credit on poverty alleviation policy operation in Nigeria will
be revealed, most especially in the stiff competition in Ifako Ijaye Local
Government Area of Lagos. Thus this
research work is significant for a number of reasons.
(i) The study finding will serve
as useful instruments to government to formulate and implement policy in
(ii) The study will serve as a reverence material for individual. For further and higher
studies in the body of literature in a relevant
study will serve as the body
of literature on the operational
in Nigerian poverty alleviations policy.
1.8 SCOPE OF THE STUDY
The emphasis of this project will be base on the revolution of impact of micro credit on poverty alleviation policy operation in
Ifako Ijaye Area of Lagos State. Various finance means will be put place by different business in Nigeria.
1.9 RESEARCH METHODOLOGY
Secondary sources of data is
used in this study Statistical tool to be employed includes percentage,
regression analysis & ANOVA The
stat8tical significance of the
valuables used in the models will be tested by
considering some means of significant testing such as T-statistic, F-Statistic, R2-Coefficient
1.10 TYPE AND SOURCE OF DATA
Secondary data will be use for this study, Central Bank of Nigeria & national Bureau statistic (1995
1.11 PLAN OF THE STUDY
This project is organized into five Chapters.
Chapter one comprises of the introduction,
statement of the problem, aim and objectives of the study, research questions, statement of hypothesis, research methodology, significance of the study, scope and limitation
of the study, definition of
terms, plan of the study, and
references related to the study.
Chapter two consists of the literature reviews.
Chapter three consists of the
four consists of the research methodology process, data
presentation and interpretation of results.
five: This comprise of the summary of findings, conclusions, recommendation, and then