Impact of Microfinance Bank on Poverty Alleviation in Nigeria

This study aimed at providing full coverage on the impact of microfinance Bank on poverty Alleviation in Nigeria. Microcredit firms provides small loans to poor people and small enterprises. This study provides an overview of the role and performance of micro finance in Nigeria. The major objective of the study is to examine the microfinance sector their performance and its impact on different poverty levels. The study made use of structured questionnaires administered to a sample of 50 randomly selected staffs of five microfinance institutions in Ekiti state and was analysed with Chi square and tables.The result of the study revealed that there is a significant impact of microfinance banks on poverty alleviation in Nigeria going by the chi square result of X 2 (12) = (81.700), P < .05 which is statistically significant,hence showing a moderate impact of microfinance banks on poverty alleviation. Microfinance is now being considered as one of the most important and effective mechanism for poverty mechanisms through which to disseminate precious information on ways to improve the health, education, legal rights, sanitation and other living standards which are of relevant concerns for the poor. It was observed that there is improvement in the microfinance sector in the recent years in terms of investment active borrowers, branches and personnel. It is hereby, recommended that micro finance banks should intensify effort in order to reduce poverty in Nigeria.