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TABLE 1: AGE DISTRIBUTION OF RESPONDENTS

Age Frequency Percentage (%)

18-30 16 23.9

31-42 30 44.8

43 and Above 21 31.3

Total 67 100

Source: Field work 2014

The above table 1 shows that only 16(23.9%) of the respondents are between the ages of 18-30 years of age, 30(44.8%) are between the ages of 31-42, while 21(31.3%) of the respondents are of the age of 43 and above. This

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implies that large percentage of the beneficiaries are the most economically active in the society and the microfinance collected will be used wisely by them.

TABLE 2: SEX DISTRIBUTION

Sex Frequency Percentage (%)

Male 50 74.6

Female 17 25.4

Total 67 100

Source: Field work 2014

The above table indicates that 50(74.6%) of the respondents are male and only 17(25.4%) are female. This shows that majority of the beneficiaries are male and that few female approach the bank for the loan assistance which implies that more female will be poorer in the society since they don’t approach the bank for microfinance.

TABLE 3: MARITAL STATUS OF THE RESPONDENTS

Status Frequency Percentage (%)

Single 21 31.3

Married 40 59.7

Divorced 3 4.5

Widow 3 4.5

Total 67 100

Source: Field work 2014

The table indicates that 21(31.3%) of the respondents are single, 40(59.7%) are married, 3(4.5%) are divorced, 3(4.5%) are widows. This implies that since majority of the respondents are married, it therefore means that the microfinance collected will be extended to other members of the family.

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Therefore, this will help reduce the number of poor in the family and the society at large.

TABLE 4: NUMBER OF CHILDREN OF THE RESPONDENTS

No. of Children Frequency Percentage (%)

1-3 7 10.4

4-6 20 29.8

Above 6 40 59.8

Total 67 100

Source: Field work 2014

From the table above, 7(10.4%) of the respondents have between 1-3 number of children, 20(29.8%) have children between 4-6 while, 40(59.8%) have children above 6. This analysis shows that majority of the beneficiaries have a lot of children of who are 6 and above, it therefore implies that the income will be used to take care of a large number of the society and will therefore reduce the poverty level in the society.

TABLE 5: EDUCATIONAL BACKGROUND OF THE STUDENTS

Educational background Frequency Percentage (%)

Adult Education 18 26.9

Primary 19 28.3

Secondary 3 4.5

Islamic Education 17 25.4

Tertiary Education 10 14.9

Total 67 100

Source: Field work 2014

From the table above, it shows that 18(26.9%) of the respondents acquired adult education, 19(28.3%) have only gone through primary education,

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only 3(4.5%) went through secondary school and 17(25.4%) only acquired Islamic education while 10(14.9%) of the respondents acquired tertiary education. This implies that majority of the beneficiaries are literate and only few are illiterate in the western sense, therefore, this means the microfinance assistance will be directed to a productive venture, since they know the purpose of the bank loan.

TABLE 6: AMOUNT COLLECTED AS MICROFINANCE BY THE RESPONDENTS

Amount Frequency Percentage (%)

10,000-50,000 10 14.9

51,000-100,000 7 10.4

110,000-150,000 17 25.4

151,000andAbove 33 49.2

Total 67 100

Source: Field work 2014

From the table above, 10(14.9%) of the respondents collected between the sum of 10,000- 50,000, 7(10.4%) collected between the sum of 51,000 — 100,000, 17(25.4%) borrowed between the sum of 110,000 — 150,000, while 33(49.2%) of the respondents borrowed about 151,000 and above as microfinance. This analysis shows that large sum of money is collected from the bank as microfinance. Therefore, the loan will be used to open a large venture with high return, and this will help alleviate poverty in the society and there will be growth in the economy of the nation at large.

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TABLE 7: INTEREST CHARGE ON THE MICROFINANCE LOAN

Interest Rate Frequency Percentage (%)

Average 25 37.3

Low 27 40.3

Very Low 12 17.9

No Interest - -

None Response 3 Total

Total 67 100

Source: Field work 2014

In the above presentation, 25(37.3%) of the respondents said the interest charge on the microfinance loan is average, 27(40.3%) of the respondent said the interest charge is low, 12(17.9%) of the respondents said the interest charge is very low and none said there was no interest while 3(4.5%) did not respond, which may mean the interest charge was high. From the analysis, majority of the respondents said the charge by the bank was low. It therefore implies that, more poor people will benefit when they approach the bank for the microfinance loan assistance. This will in no doubt increase business activities in the societies and this will encourage growth in the economy.

TABLE 8: LENGTH OF TIME IN PROCESSING THE MICROFINANCE LOAN

Time Frequency Percentage (%)

Below 1 months 8 11.9

1 months - 3 months 45 67.2

4 months - 6 months 9 13.4

Above 6 months 5 7.5

Total 67 100

Source: Field work 2014

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The above presentation indicates that, 8(11.9%) of the respondents spent below 1 months in processing the loan, 45(67.2%) said it took them between 1 month to 3 months to process the loan and 9(13.4%) of the respondents said it took them between the period of 4 months and 6 months to process the loan while, 5(7.5%) of the respondents said it took them 6 months and above to process the microfinance loan. From the analysis above, it can be deducted that majority of the beneficiaries said it took them 1 - 3 months to process the loan.

Therefore, due to the short time of processing the loan by majority of the beneficiaries, it will be encouraging to the poor people of the society in collecting the microfinance loan. This will in turn increase economic activities and also reduce the number of the poor in the society.

TABLE 9: PROBLEMS ENCOUNTERED IN SECURING THE LOAN WITH THE BANK

Problems Frequency Percentage (%)

Long Distance 21 31.3

Lack of Collateral 9 13.4

Illiteracy 17 25.4

Lack of Guarantor 6 8.9

Bureaucratic Bottleneck 4 6.1

Other 10 14.9

Total 67 100

Source: Field work 2014

The above presentation above, implies that 21(31.3%) of the respondents said they were faced with the problem of long distance from their residences to the particular lending institution, 9(13.4%) of the respondents said they lacked collateral security, 17(25.4%) of the respondents were constrained by their

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illiteracy, 6(8.9%) of the respondents said they lacked Guarantor and only 4(14.9%) said they faced no problems at all in securing the loan. The analysis above indicated that the major problem encountered in securing the loan is long distance between the bank and the beneficiaries’ residences. This serves as an obstacle which will discourage poor people from travelling to approach the bank for the microfinance loan as they will have to spend much for transportation fares. However, this will affect the number of people whom approach the bank for the loan assistance and also the aim of microfinance which is reaching out to the poor, may not be achieved.

TABLE 10: PURPOSE OF THE MICROFINANCE COLLECTED

Purpose of the Microfinance Frequency Percentage (%) Setup small scale enterprise 21 31.3

Expansion of business 11 16.4

Crop farming 21 31.3

Livestock farming 9 13.4

Rehabilitation of business - -

Others 5 7.5

Total 67 100

Source: Field work 2014

From the above presentation, it shows that 21(31.3%) of the respondents used the loan to setup small scale enterprise, 11(16.4%) of the respondents used the loan to expand their businesses, 21(31.3%) of the respondents said they used the loan for crop farming, 9(13.4%) of the respondents used the loan for livestock farming while 5(7.5%) of the respondents for others did not specify what they used the microfinance for. The analysis shows that majority of the

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respondents used the microfinance loan to setup small scale enterprise and also for crop farming which implies that the loan acquired was used for productive ventures which will help in providing employment, food security and increase in income among the people of the society.

TABLE 11: COLLATERAL SECURITY USED IN OBTAINING THE MICROFINANCE

Types of Collateral Frequency Percentage (%)

Landed Property 4 6.0

House(s) 3 4.5

Personal Guarantor 56 83.5

Verbal Promise - -

Other 4 6.0

None response - -

Total 67 100

Source: Field work 2014

The above table indicates that 4(6.0%) of the respondents used landed property as collateral security in obtaining the microfinance from the bank, 3(4.5%) of the respondents used houses and 56(83%) of the respondents used a personal guarantor as collateral security in obtaining the loan while, only 4(6.0%) of the respondents for others used a close friend’s property as collateral security to obtain the microfinance loan from the bank. From the above analysis, it can be seen that majority of the beneficiaries used a personal guarantor as collateral security to obtain the loan from the bank. Therefore, it will be easy for the poor people who can’t afford any physical asset as collateral security to approach the bank for the microfinance assistance. In essence, more poor people will benefit from the bank loan assistance.

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TABLE 12: RELATIONSHIP BETWEEN THE BENEFICIARIES AND THE BANK AFTER SECURING THE LOAN

Relationship with the Bank Frequency Percentage (%)

Guidance and Counseling 6 8.9

Inspection 19 28.3

Supervisory 38 56.8

Other - -

None Response 4 6.0

Total 67 100

Source: Field work 2014

From the above presentation, 6(8.5%) of the respondents said that the bank guided and counselled them after obtaining the microfinance, 19(283%) of the respondents said they are being inspected by the bank after obtaining the loan, 38(56.8%) of the respondents said they were being supervised by the bank after obtaining the loan and then 4(6.0%) of the respondents did not respond on their relationship with the bank after obtaining the loan. The analysis shows that majority of the beneficiaries were being supervised by the bank after obtaining the microfinance loan. This implies that the beneficiaries will use the loan for the purpose collected since they are being supervised by bank officials.

TABLE 13: DIFFICULTY ENCOUNTERED IN PAYING BACK THE MICROFINANCE LOAN

Difficulty Encountered Frequency Percentage (%) Time Lag between Collection and

Payment

19 28.3

Business Failure 6 8.9

Drought 15 22.4

High Interest 4 6.1

Other 22 32.8

None Response - -

Total 67 100

Source: Field work 2014

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From the above presentation, it can be depicted that 19(28.3%) of the respondents said the difficulty they encountered in paying back the loan was the time lag between collection and payment, 6(8.9%) of the said they faced business failure, 15(22.4%) faced the problem of drought and 4(6.1%) of the respondents said high interest rate was the problem they encountered in paying back the loan while 22(32.8%) of the respondents for others said they faced no problem at all in paying the microfinance loan. From the above analysis, it can be seen that majority of the beneficiaries did not encounter any problem while some said the problem they faced was the time lag between collection and repayment. This implies that there is minimal problem encountered in paying back the microfinance loan, which means that the main purpose of the microfinance, which is empowering the poor is achieved.

TABLE 14: MONTHLY INCOME BEFORE THE MICROFINANCE LOAN ASSISTANCE

Monthly Income (N) Frequency Percentage (%)

No Income 20 29.8

5,000—10,000 18 26.9

11,000 — 20,000 10 14.9

21,000—30,000 9 13.5

31,000 and Above 10 14.9

Total 67 100

Source: Field work 2014

From the above presentation, 20(29.9%) of the respondents have no monthly income, 18(26.9%) of the respondent’s monthly income is between N5,000- N10, 000, 10(14.9%) of the respondent’s monthly income is between

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11,000- N20, 000, 9(13.5%) of the respondent’s monthly income is between N21, 000 - N30, 000 while 10(14.9%) of the respondent’s income is N31, 00 and above. From the above analysis, it can be seen that majority of the beneficiaries are without income and only few had little monthly income before the microfinance assistance. Therefore, this implies that majority of the beneficiaries are poor and unemployed and contributed less to the economic activities of the society. But due to the microfinance loan many will be assisted and given employment opportunity.

TABLE 15: INCOME IMPROVEMENT DUE TO MICROFINANCE LOAN

Improvement in Income Frequency Percentage (%)

Yes 62 92.5

No 5 7.5

None Response - -

Total 67 100

Source: Field work 2014

From the table above, 62(92.5%) of the respondents agreed that there is improvement in their income since the bank assistance while only 5(7.5%) of the respondents said there was no improvement in their income. This analysis shows that majority of the beneficiaries experienced a tremendous improvement in their income as a result of the microfinance loan, but only few of the beneficiaries did not experience improvement in their income. This implies that microfinance loan assistance has actually achieved its aim of alleviating poverty in the economy by improving their income.

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TABLE 16: AVERAGE INCOME AFTER SECURING THE LOAN

Average annual income (N) Frequency Percentage (%)

Below 50,000 5 7.5

51,000 - 100,000 23 34.3

110,000-150,000 19 28.3

151,000-200,000 16 23.9

210,000 and above 4 6.0

Total 67 100

Source: Field work 2014

From the above presentation, it can be seen that 5(7.5%) of the respondents said their average annual income is below N50, 000, 23(34.3%) of the respondents said their average annual income is between N51,000- N100, 000, 19(28.3%) of the respondents said that their average annual income is between N110,000- N150, 000, 16(23.9%) of the respondents said their average annual income is between N151,000- N200, 000 while only 4(6.0%) of the respondents said their average annual income is N210, 000 and above. The analysis shows that majority of the beneficiaries’ annual income has increased after securing the microfinance loan. This implies that microfinance has a positive effect in poverty reduction.

TABLE 17: ASSET STATUS AFTER SECURING THE LOAN

Increase in Asset holdings Frequency Percentage (%)

Yes 53 79.1

No 17 20.9

None Response - -

Total 67 100

Source: Field work 2014

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From the table above, it can be seen that 53(79%) of the respondents said there is an increase in their assets after securing the loan while only 17(20.9%) of the respondents said there was no increase in their asset holdings. From the analysis, it can be depicted that majority of the beneficiaries’ asset holdings increased after securing the loan while few beneficiaries did not experience increase in their asset holdings. This implies that increase in assets serves as a good determinant for business security especially in times of depression (economic downturn).

TABLE 18: KINDS OF ASSETS OBTAINED AFTER SECURING THE LOAN

Assets Obtained Frequency Percentage (%)

House(s) 4 6.0

Land 9 13.5

Shares 10 14.8

Livestock 29 43.3

Motorcycles 4 6.0

Others 11 16.4

Total 67 100

Source: Field work 2014

The above presentation shows that 4(6.0%) of the respondents obtained houses with the loan given to them, 9(13.5%) of the respondents obtained land as an asset holding, 10(14.8%) of the respondents bought shares, 29(43.3%) of the respondents bought livestock, 4(6.0%) of the respondents bought motorcycles after collecting the loan while 11(16.4%) of the respondents for others said they bought goods to stock their shops, others said they used the

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extra profit to send their children to school and the remaining others said they bought farm implements. The analysis shows that majority of the beneficiaries invested large part of their loan obtained from microfinance on livestock business. This has a positive effect in bringing higher profits after sales and also livestock is a source of meat and milk, which increases nutritional value, It is also a source of manure for agricultural productivity.

TABLE 19: VIEW OF RESPONDENTS ON THE MICROFINANCE LOAN ASSISTANCE

View of Respondents Frequency Percentage (%)

Excellent 35 52.2

Fairly Good 24 35.8

Not Encouraging 5 7.5

Others - -

None Response 3 4.5

Total 67 100

Source: Field work 2014

The above table implies that 35(52.2%) of the respondents are of the opinion that the microfinance assistance is excellent, 24(35.8%) of the respondents are of the opinion that the microfinance assistance is fairly good, and only 5(7.5%) of the respondents are of the view that the microfinance loan assistance is not encouraging while 3(4.5%) of the respondents did not comment on their views of the loan assistance. The analysis shows that majority of the beneficiaries said the loan assistance is excellent while only some few are of the view that it is not encouraging. Therefore, this implies that there is a general agreement that

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microfinance plays a significant role in poverty alleviation in economic life of the poor people and should be encouraged.

From the presentation and analysis above, a higher percentage of the beneficiaries with the Nigerian Agricultural Cooperative Rural and Development Bank (NACRDB), Sokoto are men who are mostly literate. The amount of microfinance collected is largely between N150, 000 and above with low interest charge on the loan and it takes them between 1-3 months to process.

However, the presentation and analysis shows that the major problem encountered by beneficiaries is that the particular lending institution is located far away from them. Also, a high percentage of the beneficiaries said they used the microfinance loan to setup small scale enterprises for business and the same percentage said they used the loan for crop farming. The collateral security mainly used by the beneficiaries was a personal guarantor and it shows also that they are being supervised by the bank staff after collecting the microfinance loan. Nonetheless, majority of the beneficiaries did not face any difficulty in paying back the loan given to them.

On the other hand, the presentation and analysis shows that higher percentage of the beneficiaries have no income followed by the low income earners with N5,000- N10,000 per month. Majority of the beneficiaries accept the fact that there is improvement in their annual income and that their average

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annual income is between N51, 000- N100,000. Yet, majority of the beneficiaries said there is improvement in their asset holdings and that they mainly invested in the livestock business as a result of the microfinance loan assistance.

And finally, the presentation and analysis shows that higher percentage of the beneficiaries are of the opinion that the Nigerian Agricultural Cooperative Rural and Development Bank (NACRDB), Sokoto microfinance assistance loan is excellent and that they should continue the good effort of alleviating the sufferings of the teeming from poverty in Sokoto state and Nigeria as a whole.

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CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 INTRODUCTION

In This chapter, attention is focused on the summary of the study, conclusion and recommendations. It summarises and concludes the whole study, a summary of the whole chapter is presented, conclusion was made and lastly recommendation was also made for future action.