Access and impact of micro credit on poverty alleviation among farmers in kirfi local government area of Bauchi State

Abstract

This study was conducted in order to examine the role micro-credit on poverty alleviation among femers in Kirfi Local Government area of Bauchi State. Survey approach was employed to collect data from the respondents sample was collected through cluster sampling technique from the accessible population such as cooperative groups, farmers associations, and woman groups who are mainly the beneficiaries of micro finance from nine villages. A total of 100 questionnaire ware administrated out of which ninety five (95) were retrieved and used for the purpose of analysis. Data collected was subjected to analysis by use of relevant statistical tools such as percentages, pie chart presentations and bar charts. The result shows that 42.1% of the respondent obtained their loan from Bank of Agriculture, 21.1% of the respondents indicated micro finance banks, another 21.1% of the respondent indicated cooperative societies, 10.5% of the respondent indicated relations, and 5.3% indicated neighbors as their main sources of credit facilities. The result indicates that 45% respondents identified improved purchasing power of farm implements as the major impact of micro credit on their poverty alleviation status, 23.2% identified improved purchasing power of improved seed as their major impact of micro credit on their poverty alleviation level. The result also indicated that 36.8% of the respondents indicated improved feeding for their entire household as a result of the micro credit, 31.6% indicated increased purchasing power of household items while the remaining 31.6% indicated improved education of their children as the main impact of micro credit on their household. However, 47% of the respondents indicated that their major constraint in accessing loan is that there are no available Agricultural banks in their locality where they live, 21.1% indicated that there are bureaucratic bottlenecks that serve as a major constraint to their accessing loans from formal institutions .Forty seven point four percent (47.4)of the respondents indicated inadequate funds as their major constraint in accessing loans from informal institutions, while 15.8% indicated that short repayment period is a major obstacle to accessing loans from informal institutions. It is recommended that government operate Agricultural Banks in all the local government areas of the state for easy access of credit facilities to farmers, and should reduce the bureaucratic bottlenecks in the processing of the loans to farmers.