Agricultural Micro Financing and Rural Poverty Reduction in Plateau State: The Role of SMES

Authors : Agri Angela Iyaji ; Echu. E. Sunday ; Eneji Mathias Agri

DOI : doi.org/10.47752/sjbmm.63.21.35

Abstract:
The specific objective of this study is to examine and evaluate the impact of agricultural microfinance on rural poverty reduction in Plateau State. This study adopts a survey research design; specifically both quantitative and qualitative mixed approach was employed. Primary data were sourced via questionnaire instrument, informant interview, and focus group discussion on the contribution of agricultural microfinance to rural poverty reduction. Secondary data were sourced from various financial institutions.  The primary data analysis was carried out using descriptive analysis, simple percentages, mean, correlation and the Analysis of Variance (ANOVA). We found that agricultural micro financing is an effective strategy for poverty reduction in Plateau State, but it has not achieved optimum results. The microfinance institutions in Plateau State have the capacity of reaching out to wider and poorer households if they develop and innovate their loan products based on the livelihood activities. We recommend sustainable and cost-effective socio-economic development of the poor in Plateau State through micro financing. The village-level network is essential. The study is useful in agricultural entrepreneurship, limited by non inclusion of agricultural value chain.