Impact of Thrift and Loan Associations in Reducing Poverty for Economic Development of Farmers in Lafia Local Government Area of Nasarawa State, Nigeria

Abstract

In rural areas, low level people hardly ever get access to credit facilities and farm inputs due to their socio economic status, thus the poverty level of people in rural areas continue to worsen. This study was carried out to examine the impact of thrift and loan associations in reducing poverty for economic development of farmers in Lafia Local Government Area of Nasarawa State. A multi-stage sampling technique was used in selecting the respondents. Data were collected through questionnaire and interview schedule. Tools for analyses were descriptive statistics and multiple regressions. Findings revealed that household size, farm income, non-farm income, educational level and interest rate charged on credit were the significant factors that influenced the level of participation of members in thrift and loan associations. The study concludes that Micro-lending through thrift and loans associations has been considered as the solution for poverty reduction. It was therefore recommended that thrift and loan association should be supported to grow their wealth sufficiently through accumulation of enough  institutional  capital  to  finance funded  assets,  provide  cushion  to  absorb  losses, link up farmers with sources of input production thereby reducing poverty among members.

Keywords: impact, thrift and loans, association, poverty, economic, development