Micro-Credit Programme And Poverty Alleviation In Rural Nigeria: A Case Study Of Akwa Ibom State

Abstract

Micro-lending schemes have emerged as a means of guaranteeing access to credit for the poor through a financial intermediation strategy that is responsive to their socio-economic realities. This paper investigates micro-credit scheme and its impact on rural poverty, using of a lending scheme operated by a local NGO in Akwa Ibom State as a case study. Drawing upon qualitative data collected through in-depth personal and group interviews with beneficiaries of the scheme, the paper examines the scope of micro credit programs for reducing poverty, the constraints facing credit schemes and how they may be addressed. The findings showed among others that micro-credit schemes present enormous potentials for enhancing
income generation; improving household's living condition and reducing abject poverty in rural areas. Therefore, gendering credit programmes, integrating social collateral and shared liability principles, training beneficiaries on small business management and building the capacity of program staff as measures for improving efficiency were recommended.