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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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