SOCIAL CAPITAL AND MICROFINANCE: AN ANTIDOTE TO POVERTY AMONG RURAL HOUSEHOLDS IN SOUTHWEST NIGERIA

SOCIAL CAPITAL AND MICROFINANCE: AN ANTIDOTE TO POVERTY AMONG RURAL HOUSEHOLDS IN SOUTHWEST NIGERIA

Author by Dr. Olubunmi Balogun

Journal/Publisher: Journal Of Sustainable Development In Africa

Volume/Edition: 12

Language: English

Pages: 169 - 182

Abstract

The extent of the effectiveness of social capital and microcredit delivery in poverty reduction has not been fully ascertained. The study examined the effect of social network and microfinance institutions on rural household poverty in Southwest, Nigeria using multistage sampling procedure. Two states were randomly selected from the zone followed by random selection of two Local Government Areas (LGAs) from each senatorial district of each state. Thirty Microcredit Groups were randomly selected from each of the LGAs. Three hundred and ninety nine respondents were randomly selected. Data on household demographic characteristics, social capital and microcredit variables were collected with structured questionnaire. Data were analysed using descriptive statistics, Foster-Greer-Thorbecke and Tobit regression. Results show that credit (local money lender, government agency) cash contribution, meeting attendance and heterogeneity indices significantly affected the likelihood of poverty. The study recommends promotion of stocks of physical and social capital for sustainable poverty reduction.


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