COMPARATIVE ASSESSMENT OF POVERTY STATUS OF USERS AND NON-USERS OF MICRO CREDIT BY FARMERS IN KWARA STATE, NIGERIA

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Date

2015-06-10

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Publisher

Journal of Science, Technology, Mathematics and Education (JOSTMED)

Abstract

Poverty is one of the most retarding and devastating factors in human life.Micro credit could be a viable ingredient in the alleviation of poverty. However, studies that comparatively assess the poverty status of users and non-users of micro credit are scanty. The essence of this study is therefore to assess the impact of Micro credit on farmers’ poverty status in Kwara state, Nigeria. The study describe the socioeconomic characteristics of the respondents, analyzed the determinants of the poverty status as well as extent of poverty among the users and non-user of microcredit. Cross sectional data was obtained through well-structured questionnaires administered randomly to both users and non-users of Micro credit facilities in Kwara state. For the purpose of this study, 50 users and 100 non-users of Micro credit facilities were selected. Descriptive statistics, logistic regression model and Foster-Greer-Thorbecke (FGT) model were used to analyze the data collected. The result revealed that majority (96%) of the users of microcredit had some level of formal education while, majority (88%) of the non-users had no formal education. The poverty incidence of non-users is 63% while, that of users is 52%. Among the determinants of the households’ poverty status, age of the household head and the household size had positive relationship with the household’s poverty status. While, farm income, assess to credit as well as belonging to a poverty alleviation group had a negative relationship with the household poverty status.The study therefore recommends that policies that would encourage the use of microcredit by farmers should be put in place. Family planning campaign programmes should also be put in place since the result shows that households with larger family size has a higher tendency of been poor.

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Keywords

Micro credit, poverty, income inequality, household income

Citation

6. Falola, Abraham; Ayinde, O. E.; Salami, M. F. & Ezekiel Israel (2015): Comparative Assessment of Poverty Status of Users and Non-Users of Micro Credit by Farmers in Kwara State, Nigeria. Journal of Science, Technology, Mathematics and Education (JOSTMED), 11(2); 171-179. Published by Federal University of Technology, Minna, Nigeria. Available online: https://jostmed.futminna.edu.ng/index.php/archives/item/18-jostmed-11-2-august-2015

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