• No results found

For microfinance to make greater import on the poorer segment of the Nigerian society, certain limitation enumerated in the finding must however be addressed in this regard the following recommendation are made based on the finding of the study for further action by Nigerian Agricultural Cooperative Rural and Development Bank (NACRDB), Government and Non-government Organization (NGOs) involve in microfinance assistance in Nigeria.

60

Firstly, from the finding on the educational background of the respondent there is a need for literacy promotion and training for the borrowers, before given them the credit so that they will know how to use the credit judiciously to avoid bad debt, which cannot be redeem. And there should be exposure training, workshop and seminar opportunities for staff so as to prepare them effectively for the difficult task of dealing with the poor people wanting the credit.

Secondly, from the finding on the gender distribution of the beneficiaries, it was found that majority of the beneficiaries are male and female, there is the urgent need for massive campaign and encouragement both in the rural and urban areas by the Nigerian Agricultural Cooperative Rural and Development Bank (NACRDB), government and other Non-Governmental Organization (NGOs), so as to enlighten the poor women who are mostly affected with poverty, on the importance of microfinance, so that they can benefit from such assistance.

Thirdly, on the interest change on the credit, there is the need for the institution (NACRDB) to lower the interest, they should ensure that credit are given at economic rate of interest and for economic activities that will help increase the economic efficiency of the borrowers (beneficiaries).

Fourthly, from the finding on the problem encounter in securing the credit, which is mainly long distance between the beneficiaries and lending institution there is the need for government to provide NACRDB with all the necessary material needed to open branches in the local government area so as

61

to ensure easy access to its services and facilities, so that the assistance will go close to the target beneficiaries, this will also help reduce the problem of transportation between the NACRDB and its beneficiaries and will help also reduce the problem of securing the credit.

Fifthly, as regards to the relationship between the institution and its beneficiaries, this study demand that there should be honesty in transaction between NACRDBs and it beneficiaries, the institution need to be careful as they are dealing with rural low income people who earn their income in the halfway and are moved easily by fraud deals. Therefore, penalties should be given out to fraudulent borrowers so as to ensure the banks safe in its transactions with the borrowers.

Sixthly, from the finding on the length of time is takes in processing the credit with the bank, the bank should reduce the time it takes to process the credit, they should make the loan to be easily accessible and the bureaucratic bottleneck associated with the collection of the credit should be reduce, because some poor people with the frustrated and in the long run they might give up and not be interested in the credit again. So as a matter of fact, the credit should take a least less than a month to process it. Than the 3-4 month in the finding.

And lastly, the government should provide a conductive enabling environment for the growth and sustainability of the Nigerian Agricultural Cooperative Rural and Development Banks and all agencies in change of giving/providing microfinance to the poor people, through provision of a infrastructure road,

62

water, electricity, e.t.c to rural communities. This will reduce their cost of operation, increase outreach and visibly by the poor who are bound to free the increase input of NACRDB and other agencies activities if microfinance assistance.

63

BIBLIOGRAPHY

Akanji O.O. (2002): “Microfinance As a Strategy for Poverty Reduction”

Economic and Financial Review CI3N Vol.39, No.4 Pg4-13 www.centraIbank.org

Ealogun ED and Ogundipe E.A, (1999); Poverty Alleviation in Nigeria “Billion Volume 23, No.4, Central Bank of Nigeria Pg 11-64.

Basky J. and Baerson KM (1999), Giving Credit where Credit is due Washington Times-Nigeria Advertising Department. Pg 1-11//A the Washington Time-Nigerian Advertising Department Pg 1-11 File h11A.The Washington Nigeria htm.

Brochure, Nigeria Agricultural Cooperative Rural and Development Bank (NACRDB) Limited, RC10874, Promoting Agriculture and Empowering the People. Published by Cooperate Affairs Department, Kaduna State.

Daily Sun (20th September 2004): An Serious Strategy against Poverty? The Sun Publishing Limited, Lagos Nigeria. Pg 6.

Federal Bureau of Statistics (2000J), Poverty and Welfare in Nigeria. American Writing Corporation Washington D.C.

HaRI S. (1997); So, what is Microcredit? Microcredit summit Published by Coordinator Virtual Library on Microcredit Pg 1 and 2 [email protected]

S. Jhinghan M.L (2001); lith Revised and Enlarge Edition, Vrinda Publication (P) Limited Delhi, India.

64

Koota G. (2005), A need for Microcredit www.grameenkoota/need-microcred.htm

Microcredit Article and Explanation Guide (2005), Microcredit, guide, meaning, fact, Information and description.

Eparanoids.com/m/mi/microcredit.htm.

Ning C. (2005); What is Microfinance? Friend Bridge Publication Friendshipbridge.org/what-is-microcredit.htm

Nissanke M. (2002); Donor Support for Microfinance as Social Enterprises.

Copyright-IJNU/WIDER Published by School Oriental African Student University, London Pg 1-7.

Press Release GA/EF/3039 (2003); Under Secretary-General Lands Effectiveness of Microcredit of Decade for Eradication of Poverty United Nation Publication Pg 1-3.

Susan J. and Ben R. (1997); Microfinance and Poverty Reduction: An Oxfan Publication (Huk and Ireland) Pg. 5-15.

United Nation (1997); The Role of Microfinance in the Eradication of Poverty, Report of the Secretary-General United Nation Publication Pg 1-10.

abo A. M (2004); A Student Guide to Project Writing in Education Published by Life Time Educational Consultants, Farfaru Sokoto, Nigeria. Pg 43-66

Zamir M. (2004); Strengthening the Microfinance Mechanism” the Daily Star Web Edition.

www.thedailystarnet/2004/05 /08/d40508020327htm

65

APPENDIX

DRAFT QUESTIONNAIRE

Dear Respondent,

I am a final year student of the Department of Economics, Usmanu Danfodiyo University, Sokoto State. I am carrying out my research work on the role of microfinance in poverty eradication in Nigeria with a particular reference to the Nigerian Agricultural Cooperative Rural and Development Bank (NACRDBJ Limited Sokoto, Sokoto State. With a view to put forward useful suggestion to the Government, Non-Governmental Organizations (NGOs) and Banks on the relevance of microcredit in reducing the alarming and increasing rates of poverty in Nigeria.

The information gathered will be strictly used for academic purposes and so absolute confidence will be maintained. Please tick neatly where appropriate.

SECTION ‘A’: PERSONAL DATA

1. AGE:

a) 18-30 b) 31-42

c) 43 and above 2. SEX:

66

a) Male b) Female

3. MARITAL STATUS a) Single

b) Married c) Divorced d) Widow

4. If married how many children?

a) 1-3 b) 4-6 c) Above 6

5. Educational background a) Adult education b) Primary

c) Secondary

d) Islamic education e) Tertiary education

SECTION ‘B’ DATA ON MICROFINANCE

6. How much do you get as microfinance from the bank?

67

a) N10, 000 – N50, 000 b) N51, 000 – N100, 000 c) N101, 000 – N150, 000 d) N150, 000 and above

7. How is the interest on the microfinance?

a) Average b) Very low c) Low d) No Interest

8. How long does it take you to process the loan with the bank?

a) Below 1 month b) 1 month – 3 months c) 4 months – 6 months d) Above 6 months

9. What are the problems you encounter in securing the microfinance?

a) The existing lending institution is located far away from you b) Lack of collateral

c) Illiteracy

d) Lack of guarantor e) Bureaucratic bottleneck

68

f) Others (specify)………..

10. What was the purpose of the microfinance collected?

a) Setup small scale business enterprise b) Expansion of business

c) Crop farming d) Livestock farming

e) Rehabilitation of business

f) Others (specify)………

11. Which of these did you use as collateral security in obtaining the microfinance from the bank?

a) Landed property b) House(s)

c) Personal guarantor d) Verbal promise

e) Others (specify)……….

12. After obtaining the microfinance, what contact did you have with the bank?

a) Guidance and counselling b) Inspection

c) Supervision

d) Others (specify)………..

69

13. What difficulty did you encounter in the process of paying back the microfinance loan

a) Time lag between the collection and repayment b) Business failure

c) Drought

d) High interest rate e) Others (specify)

SECTION C: DATA ON INCOME

14. What was your income before the bank microfinance loan?

a) No income

b) N5, 000 – N10, 000 c) N11, 000 – N20, 000 d) N21, 000 – N30, 000 e) N31, 000 and above

15. Did you notice any improvement in your annual income since the microfinance loan?

a) Yes b) No

70

16. If yes to the above, what is your average annual income?

a) Below N50, 000 b) N51,000 – N100, 000 c) N110, 000 – N150, 000 d) N151, 000 – N200, 000 e) N210, 000 and above

17. Is there an increase in your asset holdings as a result of the microfinance loan?

a) Yes b) No

18. If yes to the above, what asset did you obtain with the microfinance given to you?

a) House b) Livestock c) Land d) Shares e) Motorcycle

f) Others (specify)………

19. What can you say about the microfinance loan?

a) Excellent