Influence of Loan Disbursement by Microfinance and Non-Microfinance Institutions on Poverty Alleviation in Nigeria

This study analyzes the empirical relationship between microfinance and poverty alleviation among 80 members of MFIs and non MFIs in Lagos. The sample was selected through purposeful sampling. The study instrument was a structured questionnaire that was tested for reliability. Study results were analyzed using percentages, chi-square test, F-test and T-test. Findings indicate that:

• There are significant differences between people who use MFIs and those who do not;
• MFIs help alleviate poverty by increasing income and changing clients' economic status;
• Microfinance has affected the life of the poor in positive ways by improving employment, increasing incomes and ability to invest more capital into business;
• There is significant effect of MFIs in predicting sustainable development in Nigeria.

The study concludes that microfinance is a potent strategy for poverty reduction and for providing credit to the poor. It recommends that program outreach and depth of microfinance should be improved for it to become a more viable tool for sustainable poverty alleviation. Government should provide an enabling environment for microfinance by ensuring political stability, a stable macro-economic environment and low inflation rates.