Poverty Alleviation Through Micro Financing in Nigeria: Prospects and Challenges (Report‪)‬

Abstract This study takes a critical look at the recent micro finance policy and attempts by the Nigerian government to encourage private sector-led establishment of micro finance banks (MFBs) as a potent means of poverty alleviation. The objectives of the study are to examine the inherent strengths and limitations, and proffer solutions. The methodology adopted is a clarification of extant concepts, explication of rationale for the government's policy, and a brief review of the development of micro financing in Nigeria. It also involved a critical analysis of the dominant issues in the policy. The study identified vital constraints to the policy as including weak infrastructures and fraudulent persons in the process. Some of the recommendations to improve the success of micro financing to reduce poverty in Nigeria are more efforts at institutionalization of MFBs and financial liberalization. Others include the provision of adequate infrastructures such as functional roads and electricity especially in the rural areas.