ACCESSIBILITY OF MICROFINANCE PRODUCTS FOR INCOME GENERATION AND POVERTY REDUCTION IN JIGAWA STATE

Abstract

Small loans are critical for alleviating mass poverty, particularly for individuals unable to finance small-scale businesses. This study explores the role of accessing microfinance as a tool for poverty alleviation in Jigawa State, Nigeria, highlighting its effectiveness in providing financial and non-financial services to marginalized individuals. The research underscores the complexities of poverty reduction, which is influenced by various socio-economic factors and cultural dynamics. Utilizing a survey of 450 microfinance beneficiaries across three senatorial districts, the study employs multiple regression analysis to examine the impact of demographic variables—such as gender, marital status, age, number of dependents, educational level, and religion—on access to microfinance products. Findings reveal that education, marital status, and religious affiliation significantly affect perceptions of microfinance's benefits, while gender, age, and number of dependents show limited influence. The results suggest a need for tailored microfinance products to better support married individuals and enhance financial literacy among clients. Additionally, the high prevalence of Muslim respondents indicates that aligning microfinance offerings with Islamic principles may improve acceptance and utilization. The study concludes that while microfinance has potential for income generation and poverty reduction, its success depends on adapting services to meet the diverse needs of the community, complemented by educational initiatives and collaborative partnerships with government and development organizations.