Micro-finance as a Strategy for Poverty Reduction By

The paper established the facts that poverty is indeed increasing in Nigeria based on the poverty assessment study commissioned and sponsored by the World Bank in 1995. It further indicated in the introduction that the World Bank and the IMF group are focusing on poverty reduction as a prerequisite for debt relief. The paper is structured into five sections with introduction being section one. Section two gives conceptual framework and reviews some country experiences of micro-credit programs. Section three describes the efforts put in place in Nigeria-the World Bank group efforts and the IMF to alleviate poverty while section four offers the micro-finance model and principles, that could be adapted in Nigeria considering the Nigerian experience on financial intermediation. Section five concludes the paper. In the conclusion, the paper emphasized that indeed micro-finance is a strategy of poverty reduction. Looking ahead to the future of micro-finance program in Nigeria, the paper indicated that: • There is significant room for improvement within the current dispensation. • The current situation with improved revenue through oil wind fall could support the poverty reduction program. • Serious issue of supervision must be tabled and discussed thoroughly with the financial sector regulating authorities for the new merger of formal/informal credit institutions. * Training must be built into the micro-finance program. • Ensure the budget provisions are made during fiscal year to assist program of transfer to the poor *Mrs. O.O. Akanji is Deputy Director of Research, CBN. CBN ECONOMIC & FINANCIAL REVIEW, VOL. 39 N0. 4