Micro Credit Scheme as Correlate of Poverty Alleviation Among Traders in Ibadan Metropolitan City, Oyo State, Nigeria

Abstract

The incidence and magnitude of poverty in Nigeria has been on the increase and this has given rise to micro-credit, which has been in existence for a very long time now. The traders in Ibadan metropolitan embraced microcredit scheme to solve the problems of access to funding their business and alleviation of poverty. This study examines the influence of micro credit scheme on poverty alleviation among traders in Ibadan metropolitan city. Simple random sampling technique was used to select 300 participants who were used for the study. Two major instruments were used in the study; these were Microcredit Poverty Alleviation Inventory (MPAI) and Microcredit Beneficiaries Assessment Scale (MBAS). The finding shows that there was a significant relationship between microcredit scheme and poverty alleviation among the traders (r = .538*, N= 300, P < .01). The finding further shows that there was significant relationship between .microcredit scheme and increasing assets of small scale business enterprises (r = .892**, 41V= 300, P < .01). The study has affirmed that while micro-credit has tremendous potentials as an instrument for poverty alleviation. It is recommended that complementary efforts such as literacy promotion and training should be given to those who lack the skills to enable them make good use of the credit for economic activities.