Reviving the Debate on Micro Finance as a Poverty Reduction and Development Policy Instrument: Edo State Micro Credit Scheme Revisited.

Abstract

This paper investigates from the stand point of the users, and its main argument is that the discourse on micro finance has always been from the perspective of the financial institutions and this has adversely distorted the facts and has made micro finance to be seen as a poverty alleviation tool. The participatory development theory was applied in this paper which examined Edo State Micro Finance scheme. The secondary and primary sources of data collection were employed and surveys conducted in two markets and two farmers’ co-operative. Using simple percentages, the analysis of data established that micro finance has not resulted in any asset accumulation and therefore has not been able to alleviate the poverty of participants. However, household consumption increased minimally. The findings of this study suggest that a total reinvention of micro finance both in terms of design, funding and implementation should be considered for it to serves its purpose.

Keywords: Poverty. Micro- Credit. Grameen Model. Development