The Impact of Cooperative Financing on Millennium Development Goal of Poverty Eradication: Lessons from Nigeria

Abstract

Despite the efforts and resources devoted to fighting poverty by the Nigerian government empowerment programmes, the problem has remained intractable. Significant among the medium for poverty alleviation models are users-owned organizations (Cooperative societies) designed as individual self-help and empowerment vehicles for micro-credit delivery. Testing the Cooperatives strategies in Nigeria is expected to give insight into the state of poverty in the continent of Africa and provide measuring guide to Millennium Development Goals (MDGs) relating to poverty reduction. This paper attempts to investigate the impact of cooperative financing method on the attainment of MDGs objective as regards poverty reduction. Data collected from the stakeholders in cooperative organizations in Nigeria were analyzed using descriptive statistics, regression analysis and Chi Square to establish the relationship between cooperatives financing, poverty reduction and its significance as a criterion for achieving the MDGs objectives. Causality was found between the tested variable especially cooperative credit assistance and poverty alleviation. The paper recommends that government policy should acknowledge the micro credit power of cooperatives and integrate this into its micro financing policy-focus.

Keywords: Poverty, Poverty-Eradication Finance, Cooperative Financing Method, MDG