[01] John N. N. Ugoani, College of Management and Social Sciences, Rhema University, Aba, Nigeria.

This study was designed to explore the degree of gap between microfinance and poverty reduction management in Nigeria. Despite the multiplicity and mushrooming of microfinance institutions in Nigeria the poor yet has no sufficient access to micro financial and socio economic services that would propel them out of poverty. Microfinance broadly refers to the provision of financial services, primarily but not exclusively savings and credit, to poor households that do not have access to formal financial institutions. Poverty involves a situation where standard of living in terms of income and consumption falls below minimum acceptable level of nutrition and other necessities of everyday life. The main causes of poverty are unemployment, low income, and lack of access to socioeconomic amenities such as basic education, healthcare, transportation, water, among others. Increasing poor households’ participation in and access to socioeconomic activities is important for economic growth, because economic growth has been the main source of sustained poverty reduction. Poor people need financial services, including deposits, loans and other services, to seize business opportunities, improve their homes, deal with other large expenses, and cope with emergencies. There is evidence that the poor can be served profitably on a long-term basis, and that they repay uncollaterized loans reliably and are willing to pay the full cost of such loans. The participants were drawn from the population in Abia State. An instrument adapted from the Core Welfare Indicators Questionnaire was used to generate data. These were complemented by the data generated through the SOMIWIRE. Data analyses were done through descriptive and Chi-Square Statistical Methods. It was revealed that an average of about 88 percent Nigerians lack access to socioeconomic amenities that would propel them out of poverty. With a Chi-square of value of 335 against the table value of 13, it was found that microfinance has a high degree of relationship with poverty reduction management in Nigeria.

Microfinance, Poor People, Poverty Reduction Management, Grameen, Uncollaterized Loans, Traditional Poverty Traps, Traditional Microfinance Outfits

[01] Afolabi, B, (2014) Shoring up MSMEs. The Nation, vol. 08, No. 2733, pp. 64. [02] Aganga, O. (2012) Nigeria has about 17.3m SMEs. The Nation, vol. 7, No. 7143. Pp: 12. [03] Akinboyo, O. L (2007) Microfinance Bank: Unlocking the Potentials of Microbusiness Activities of the Nigerian Rural Economy Central Bank of Nigeria Bullion, vol. 31, No. 1. [04] Akpala, P. E (2011) Microfinance Certification – Programme: A Study Manual (Revised) Lagos. The CIBN Press Limited. [05] Anjali, K and Djankor, S (2009) Banking the Poor Measuring Banking Access in 54 Economies. The World Bank, Washington, D. C. [06] Aziz, Z. A (2007) Asia’s Decade of Transformation. Finance and Development, vol. 44, No. 2, pp: 26–27. [07] Besley, T and Cord I. J (2007) Delivering on the Promise of Pro-Poor Growth. Insights and Lessons from Country Experience. The World Bank, Washington, D. C. [08] Besley, T, Burgess, R and Esteve-Volart, B (2007) The Policy Origins of Poverty and Growth in India. In T. Besley and L. J Cord (eds). Delivering on the Promise of Pro-Poor Growth. Insights and Lessons from Country Experiences. The World Bank, Washington, D. C pp: 59-78. [09] Chiejina, N, and Adeyeye, A (2012) Microfinance Banks to Face Stress Test Before Assessing Funds. The Nation, vol. 7, No. 2185, pp: 11. [10] Coudouel, A, Ezemenari, K, Gosh, M and Sherburne-Benz, L (2002) Social Protection. In Klugman (ed.) A Sourcebook for Poverty Reduction Strategies, Vol. 2 Macroeconomic and Sectoral Approaches. The World Bank, Washington, D.C, pp: 143-200. [11] Coudouel, A, Dani, A. A and Paternostro, S (2006) Poverty and Social Impact Analysis of Reforms. Lessons and Examples from Implementation. The World Bank, Washington, D. C. [12] Devargajan, S, and Reinikka, R (2003) Making Services Work for Poor People. The Poor need more control over essential services. Finance and Development, vol. 40, No. 3, pp: 48-51. [13] Federal Government of Nigeria (2004) Microfinance Programme, Abuja. [14] Federal Military Government of Nigeria (1997) FEAP Blueprint Abuja. [15] Federal Military Government of Nigeria: PBN Decree No. 22 (1990) Supplement to Official Gazette Extraordinary, No. 45, vol. 77, 30/7/1990, Abuja. [16] Federal Military Government of Nigeria: Community Banks Decree (1992) Abuja. [17] Kalu, M (2001) Progress in Poverty Alleviation in South East Asia London: Banner Books. [18] Klugman, J (2002) A Source book for Poverty Reduction Strategies: Annex E. Strengthening Statistical Systems. Technical Notes and Case Studies. Pp: 471-503. [19] Klump, R (2007) Pro-Poor Growth in Vietnam: Miracle or Model? In T. Besley, and L. J Cord (eds) Delivering on the Promise of Pro-Poor Growth. Insights and Lessons from Country Experiences. The World Bank, Washington, D. C pp: 119–146. [20] Kota, I (2007) Microfinance: Banking for the Poor. Finance and Development, vol. 44, No. 2, pp: 44-45. [21] Ledgerwood, J and White, V (2006) Transforming Microfinance Institutions. Providing Full Financial Services to the Poor. The World Bank, Washington, D.C, pp: 21–63. [22] Littlefield, E, and Rosenberg, R (2004) Microfinance and the Poor. Breaking down walls between Microfinance and formal Finance. Finance and Development, vol. 41, No. 2, pp: 38-40. [23] Mboho, K. S and Inyang, A. I (2011) Poverty Alleviation Programmes in Nigeria: A Study of the United Nations Development Programme (UNDP) Micro-Credit Scheme in Uyo, L.G.A of Akwa Ibom State. International Journal of Social and Policy Issues, vol. 8, No. 1, pp: 162-174. [24] Moses-Ashike, H (2012) MFBs set to disburse N600bn to small holder farmers. Business Day, vol. 10, No. 218, pp: 28. [25] Nigeria Deposit Insurance Corporation (2011) Annual Report and Statement of Accounts, Abuja. [26] Nyong, S (2004) The Political Economy of Poverty Alleviation in Nigeria. Development Studies 24 (6) 177–190. [27] Nweze, C (2012) Microfinance Fund to Address Sector Hitches. The Nation, vol. 7, No. 2185, pp: 55. [28] Nzenwa, S. O. E (2000) Micro Credit and Development: Poverty Alleviation in Nigeria. Lagos. Centre for Development and Civic Education. [29] Obasi, E (2001) The Vision 2010 Agenda in Nigeria’s Development. Mbaise, New Vision Publishers. [30] Odunze, B (2015) MSMEs’ access to N220bn by adoption of sound risk mgt-NDIC. Daily Sun, vol. 10, No. 3255, pp: 50. [31] Okafor, F. O (2014) Economic and Financial Inclusion Strategies for Arresting Systemic Poverty Amidst Robust Economic Growth in Nigeria. Paper Presented at the 4^th Accounting and Finance Research Association (AFRA) International Conference at Staff Development Centre, Abakaliki, Nigeria. [32] Osehobo, V (2012) 67 Million Youths unemployed – Minister Nigerian Pilot, vol. 2, No. 154, pp: 1-2. [33] Pattillo, C, Gupta, S, and Carey, K (2006) Growing Pains with Africa’s growth finally picking up, the challenge is to accelerate and sustain the pace to reduce poverty. Finance and Development, vol. 43, No. 1, pp: 32-35. [34] Saavedra, J and Arias, O. S (2005) Stuck in a Rut Avenues for Combating Persistent Poverty and Inequality in Latin America, Finance and Development, vol. 42, No. 4, pp: 18-22. [35] Sen, B, Mujeri, M, K and Shahabuddin, Q (2007) Explaining Pro-poor Growth in Bangladesh: Puzzles, Evidence, and Implications. In T. Besley and L. J Cord (eds). Delivering on the Promise of Pro-Poor Growth. Insights and Lessons from country experiences. The World Bank, Washington, D. C pp: 79-117. [36] Sinha, A. K (2015) Building Sustainable Microfinance Institution in India in Changing Regulatory Environment. Amity Business Journal, vol. 4, No. 1, pp. 36-43. [37] Taiwo-Obalonye, J (2015) 18 States benefit from FG’s bailout so far. Daily Sun, vol. 10, No. 3233, pp. 3. [38] Tien Hung, G. N (2004) Bank on Wheels. Finance and Development, vol. 41, No. 2, pp: 41-43. [39] Timmer, C. P (2007) Now Indonesia Connected the Poor to Rapid Economic Growth. In T. Besley and L. J Cord (eds) Delivering on the Promise of Pro-poor Growth. Insights and Lessons from Country Experiences. The World Bank, Washington, D. C, pp: 29-57. [40] Ugoani, J. N. N (2013) Power of Bank credit on Economic Growth: A Nigerian Perspective International Journal of Financial Economics. vol. 1, No. 3, pp: 93-102. [41] Ugoani, J. N. N (2014) Dimensions of Public Policy and Governance: Journal of Public Policy and Governance vol. 1, No. 2, pp: 51–61. [42] Ugoani, J. N. N (1999) A Technical Report on the Evolution and Operation of the Family Economic Advancement Programme. The Prospective Accountant. The Journal of the National Association of Polytechnic Accountancy Students 3rd Edition, vol. 03, pp: 24-26. [43] Ugoani, J.N.N and Dike, O. N (2013) Problems of Microcredit among Microenterprises in Nigeria. Research Journal of Finance and Accounting, vol. 4, No. 6, pp: 49-56. [44] World Bank (2003b) Poverty in Bangladesh Building on Progress. Washington, D. C World Bank. [45] World Development Report (2015) Mind, Society and Behaviour. The World Bank, Washington, D. C.