Microfinance Institutions and Poverty Reduction in Taraba State, Nigeria

Abstract

This study examined the impact of microfinance institutions individual business loans on school enrolment in Taraba State. The survey research design adopted for this study and the vicious circle of poverty was adopted as its theoretical frame work. Data were collected through administration of questionnaire to 397 respondents selected from three senatorial districts in the State and one on one interview with the loan beneficiaries, farmers, and civil servants and phone interview was also used as one of the survey research design tools to obtained data. Other method used includes descriptive and inferential statistics, the analytical techniques used in the analysis of the data includes; foster, Greer and Thorbecke’s (FGT) weighted poverty index which the probit regression model was used. Based on the findings, the study concludes that individual business loans have had significant impact on improved School enrolment for the beneficiaries in Taraba State. Hence, this study recommended that enhancing school enrolment in the state and empowering the people against poverty, conditional cash transfer and home-grown school feeding programs may be an effective complement or alternative integrated strategy for increasing enrolments across the state for different individuals and family status.