ABSTRACT
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 work.
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
CHAPTER ONE
1.0 Background to the study
1.1 Introduction
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
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
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
deductable donation
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
References
CHAPTER THREE
3.0 Research Methodology and data Collection
3.1 Introduction
3.2 Methodology
3.2.1 Type and source of data
3.3 Research Design
3.4 Data Analysis
CHAPTER FOUR
4.0 Data analysis and interpretation of
results
4.1 Introduction
4.2 Model Specification
4.3 Data presentation
4.4 Estimation of problem and interpretation
of results
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendations
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
Bibliography
Appendices
CHAPTER ONE
BACKGROUND TO THE STUDY
1.1 INTRODUCTION
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 infrastructures.
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 i:pSion that researcher
would address in subsequent chapters.
1.3 OBJECTIVE OF THE
STUDY
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
L.G.A.
(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 OFMICROCREDIT 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
Lagos State?
1.8 RESEARCH
HYPOTHESIS
Hypothesis is 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.
HYPOTHESIS 1
Ho: There is no positive effect of micro
credit on poverty Alleviation Policy in Ifako Ijaye Local Government of Lagos State.
H1: There is positive effect of micro credit
on poverty Alleviation Policy in Ifako Ijaye Local Government of Lagos State.
HYPOTHESIS II
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 poverty alleviation.
(ii) The study will serve as a reverence material for
individual. For further and higher studies in the body of literature in a relevant area.
(iii) The study will serve
as the body of literature on the operational
and
efficiency 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
of determination.
1.10 TYPE
AND SOURCE OF DATA
Secondary data
will be used for this study, Central
Bank of Nigeria & national Bureau
statistic (1995 - 2010)
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 structural composition.
Chapter four consists
of the research methodology process, data presentation and interpretation of
results.
Chapter five: This comprise of the
summary of findings, conclusions, recommendation,
and then the references.
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