Strategies for Enhancing the Implementation of Microfinance Policy for Poverty Reduction in Nigeria

Abstract

This study investigates Strategies of microfinance policy implementation on poverty reduction in southwestern Nigeria. This was with a view to providing information on the Strategies of microfinance policy on poverty reduction in Southwestern Nigeria. Using a descriptive survey design, primary and secondary data were collected from loan beneficiaries in the selected States. BOA (Ogun, 27; Osun, 24, and Ondo, 25), BOI (Ogun, 9; Osun, 7; and Ondo, 9), and MFBs (Ogun, 32; Osun, 46; and Ondo, 35). Questionnaire were distributed to these beneficiaries, while the indepth interview was conducted with the managers of the loan institutions in the selected states in the study area. Secondary data was sourced from the reports of BOA, BOI, CBN, and related government publications. Data gathered were analysed using percentages and content analysis. The findings revealed that flexible loan repayment paln is one of the strategy employed by microfinance policy in reducing the rate of poverty in Southwestern Nigeria.The study concluded that microfinance policy implementation had a significant positive impact on poverty reduction in Southwestern Nigeria through simplified financial services, small loan packages, flexible repayment plans, focus on SMEs, localised services, shortened loan processing time, and promotion of personal savings