MICROFINANCE AND POVERTY REDUCTION IN NIGERIA: EVIDENCE FROM LOKOJA, KOGI STATE
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Abstract
This study investigates the impact of microfinance on poverty reduction in Lokoja,Kogi State, Nigeria, focusing on how microfinance services influence income generation and jobcreation among beneficiaries. Data were collected from 370 microfinance clients using structuredquestionnaires and analyzed through descriptive statistics, correlation, and regression analysis. Theresults indicate that microfinance services significantly enhance poverty reduction primarilythrough income generation, while job creation was not statistically significant. The findingshighlight that access to loans, savings, and financial training improves beneficiaries’ financialautonomy and household welfare. Challenges such as high interest rates, rigid repayment terms,and limited financial literacy constrain the effectiveness of microfinance. Based on these results,the study recommends strengthening financial literacy programs and improving loan accessibilityto maximize the poverty-alleviation potential of microfinance services.