Contributions of Selected Sachet Water Enterprises to Poverty Reduction in Yola, Adamawa Sate

Abstract

Over the years successive governments in Nigeria have recognized the importance of Micro Small and Medium Scale Enterprises (MSMEs) in ensuring sustainable growth and developing in the economy. Like many other developing nations, Nigeria government has introduced various programmes such as Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Bank of Agriculture (BOA), Community Banking Scheme (CBS) and Poverty Alleviation Programme (PAP) among others to support SMEs growth in order to enhance job creation and further reduce poverty level. The extent to which these programmes have reduced the level of poverty in Nigeria remains a thing of intense debate in the academic discourse. Hence, this study assesses the contributions of selected sachet water enterprises to poverty reduction in Yola metropolis, Adamawa State, north eastern part of Nigeria. Hypothesis was formulated to guide and direct the study. The researchers used a survey design and data were collected using an instrument referred to as SAWAFPOR instrument from 132 sachet water firms that were randomly selected from 200 Sachet water firms in Yola metropolis of Adamawa State. Data was analyzed using regression analysis. The study revealed that sachet water enterprises in Yola metropolis had a small significant impact on poverty reduction level especially in the areas of creating jobs; increase in investment opportunities for entrepreneurs and improving the socioeconomic status of the inhabitants. The study concluded that sachet water enterprises have caused a small reduction in poverty level in Yola metropolis. The study recommended that governments and non-governmental organizations should create an enabling environment for the establishment and sustainability of sachet water MSMEs in view of their potential to aid poverty reduction.

Keywords: Sachet Water MSMEs, Poverty Reduction, Yola metropolis, Government Funding Interventions.