Microfinance: A Practicable Antidote to Poverty Reduction in Nigeria

Abstract

This paper examined the fundamental relevance of microfinance as a practicable antidote to poverty reduction in Nigeria. Countries across the globe are increasingly exploring, developing and utilizing microfinance programs as a viable alternative to poverty alleviation. The aimed to examine the effects of microfinance programs on poverty reduction in the country. It also sought to provide answers to how microfinance programs empower the participants and develop sustainable income. In order to investigate these underlying premises, this study examined empirical evidence in Nigeria to affirm if microfinance is a good poverty reduction strategy. For this purpose, the case of a microfinance institution situated in Nigeria, Grooming Centre was analyzed in relation to its financial services towards the poor in the country, specifically its direct clients. The paper is based on a qualitative case study methodology as the strategy of inquiry with the use of simple descriptive analysis. It argues that microfinance is valid and reliable as a strategy to help people who live in poverty escape from poverty. The paper concludes and recommends areas for future research on proactive measures of mitigating the scourge of poverty and enhancing human security in the country.

Keywords: Microfinance, Poverty, Poverty Reduction, Grooming Centre, Nigeria.