MICROFINANCE AS AN EFFECTIVE TOOL FOR POVERTY ALLEVIATION IN NIGERIA

When an individual or community lacks the means of subsistence, they are said tobeinastate or situation of poverty. Microfinance banks are financial establishments designedtohandle relatively small deposits and loans with a focus on helping the underprivileged. Theimpact of microfinance banks in reducing poverty in Nigeria is examined in this study. Thechi-square technique and the t-test were used to evaluate the data. The conclusionof thehypothesis was that microfinance banks have a beneficial effect on reducing poverty. According to the results, it is advised that the interest rates of microfinance banks be loweredin order to draw more clients to the institution, and the loan size should be increasedinorderto satisfy client needs. Additionally, there should be thorough orientation for bothbankemployees and consumers, as information is power and the fight against poverty cannot bewon without a sufficient level of public education. Also, the government has to introduceregulatory measures that support and enhance the efficiency of microfinance institutions.