Impact of Micro-Credit on Poverty Alleviation among Contact farmers’ households in ogun state, Nigeria

  • A. S. Onasanya Olabisi Onabanjo University, Ago-Iwoye, Nigeria.
  • Ezekiel Olaoluwa Akerele Olabisi Onabanjo University, Yewa Campus, Ayetoro, Ogun State, Nigeria.

Abstract

This study examined the impact of micro-credit on poverty alleviation among farming households in Ogun State, Nigeria. One hundred and thirty-two (132) respondents were randomly selected from villages/towns in the State using purposive and multistage random sampling techniques. The respondents were interviewed using a well-structured questionnaire. Data collected from the respondents were analysed using descriptive and inferential statistical tools. Findings on the socio-economic characteristics of the respondents revealed that majority 63.6% were female, 56.1% fell within the age range of 41-50 years, 64.4% were married, 58.3% had no-formal education, 79.6% had an household size between 1-6 members, 31.1% were farmers, 69.7% had between 6-15 years of occupational experience and 64.4% were non-members of cooperative societies. The result of the logit regression analysis showing the impact of micro-credit on poverty alleviation revealed that age, educational status, sex, farm experience and annual farm income had positive impact on the poverty alleviation through micro-credit while household size had negative impact on the poverty alleviation through micro-credit in the study area. With respect to barriers of poverty alleviation through micro-credit, findings showed that most of the respondents faced one form of barrier to the other out of which 18.2 per cents faced problems associated with location, lack of land ownership and tenure and 9.1 percents faced barriers associated with lack of pro-active government support for involvement by the poor.


Thus, the study concluded that poverty level is still high among the respondents despite the high experience of the respondents in their various occupations. This may be caused due to their low level of education. Therefore, this study recommends that government policies should improve the level of education among household to increase profitability and productivity.


Keywords: Poverty, Micro-Credit, Farming, Productivity, Profitability

Published
2018-06-24
How to Cite
ONASANYA, A. S.; AKERELE, Ezekiel Olaoluwa. Impact of Micro-Credit on Poverty Alleviation among Contact farmers’ households in ogun state, Nigeria. KIU Journal of Humanities, [S.l.], v. 3, n. No. 2, p. 99-109, june 2018. ISSN 2522-2821. Available at: <https://ijhumas.com/ojs/index.php/kiuhums/article/view/298>. Date accessed: 29 mar. 2024.