The Impact Of Microfinance On Welfare And Poverty Alleviation In Southwest Nigeria

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION Pages

1.1 Background of the Study……………………………………………….……… 1

1.2 Statement of the Research Problem……………………………………................. 4

1.3 Research Question……………………………………………........................... 5

1.4 Objectives of the Study……………………………………………………….… 6

1.5 Statement of Research Hypotheses …………………….……................ 6

1.6 Significance of the Study ……….………………………………………......... 7

1.7 Scope of the Study ………………………………………………….................. 7

1.8 Outline of the Thesis ………………………………………………………… 8

1.9 Method of Data Collection & Analysis………………………………….8

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction………………………………………….………..…………….…..….. 10

2.2 Microfinance: A Review of Background, Operations and Structure/Models …….. 10

2.2.1 Brief Historical Background ……………………………………………… 10

2.3 Review of Microfinance Models ……………………………..…………… 13

2.4 Review of Empirical Studies ……………………………………………….. 16

2.4.1 Microfinance Experience in United States of America……………………………. 16

vii

2.4.2 Microfinance Experience in Europe…………………………………… 17

2.4.3 Asian/Latin America……………......……………..………………………… 18

2.4.4 Africa………………………………………………………………………..……... 26

2.4.5 Nigeria……………………………………………….………………………….…. 34

2.4.6 Lending Activities of Microfinance Banks in Lagos State in 2011 to Empower

The Poor ………………………………………38

2.5 Roles of Microfinance in MSMES………………………………………… 39

2.5.1. Some Innovative Ideas ………………………………………………………39

2.5.2. Interventions of Non-Governmental Organizations (NGOs) ……………………… 42

2.5.3. Funding Services for Microfinance Banks ……………………………………….. 44

2.5.4. Key Success Factors in Nigeria …………………………………………………… 47

2.5.5. Sustainability of Microfinance Institutions ……………………………………….. 49

2.5.6 Challenges Confronting Microfinance Institutions ……………………………….. 50

2.6 A Global Perspective on Microfinance…………………………………………… 53

2.6.1 Global Status of Microfinance Worldwide ………………………………………. 53

2.6.2 Steady Growth of Microfinance Institutions Globally …………………………… 55

2.6.3 Lending Portfolio of the Larger Microfinance Institutions in Africa as at 2005 … 56

2.6.4 Activities of Borrowers Financed by Microfinance Institutions in Bangladesh …. 58

viii

2.6.5 Microfinance Performance in Nigeria …………………………………………….. 60

2.7 Some Individual Experiences…………………………………………………… 67

CHAPTER THREE: RESEARCH METHODOLOGY.………………………………………. 72

3.1 Introduction………………………………………………………………………… 72

3.2 Theoretical/Conceptual Framework …….…………………………………………. 72

3.2.1 Theoretical Framework …………………………………………………………….. 72

3.2.2. Conceptual Framework …………………………………………………………….. 77

3.3. Research Methodology …………………………………………………………….. 81

3.3.1 Research Design …………………………………………………………………… 81

3.4 Population and Sample Design …………………………………………………….. 81

3.5 Sampling Technique ……………………………………………………………….. 82

3.6 Data Collection and Sources of Data …………………………………………….. 83

3.7 Reliability of Instrument …………………………………………………………. 83

3.8 Questionnaire …………………………………………………………………….. 83

3.9 Model Specification ……………………………………………………………….. 84

3.10 Analytical Technique………………………………………………………………. 88

4.0 CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION OF REPORTS. 89

4.1 Some Characteristics of the Respondents …………………………………………. 89

4.1.1Microfinance Institutions (MFIs) and their Characteristics in the Study Area 90

4.1.2 Socio-economic characteristics of customers of MFIs ……………………. 92

4.2. MFIs and Microcredit Dispersion among Respondents ………………………….. 99

4.2.1 Level of Patronage of MFIs by Respondents ……………………………………… 100