Poverty Alleviation in the Northeast Nigeria Mediation of Performance and Moderating Effect of Microfinance Training: A Proposed Framework

Abstract

Poverty is a deficiency in political, social and economic resources. This is caused by lack of employment, capital to establish businesses to earn income, cultural factor, tradition and religion. Women are supposed to be players in assisting their households and in economic growth and development of any nation. Unfortunately, they are prevented as a result of poverty. Microfinance institutions were established for the past decades to help women in fulfilling their dreams of getting out of poverty. These programs of microfinance institutions have expanded across the globe, to provide the financial needs of poor women who do not have the capacity to access funds from traditional banks. This has been possible due to the intervention of nongovernmental organization and support of governments. This support contributes to economic growth and development of their households, communities and the country at large. The main aim of this study is to examine poverty alleviation in Northeast Nigeria, mediation of performance and the moderating effect of microfinance training. Based on the findings of the literature review and the need for more studies, a conceptual framework was developed to test this relationship. Welfare theory will be used to explain the relationship among the constructs in the conceptual model.

Microfinance practices versus sustainable welfare

“…It is found from related literature that microfinance positively impacts poverty alleviation and is an effective tool for poverty reduction in many countries, including India, Nigeria, Ghana, South Asia, Latin America, the Caribbean, Uganda, Ethiopia, and Tanzania. When implemented and managed carefully, and when services are designed to meet the needs of business actors, microfinance has a positive impact not only on business actors but also on families and the wider community (Belwal et al, 2012;Beisland & Mersland, 2012;Cristabell & Vimal Raj, 2012;Kato & Kratzer, 2013;Kaka & Abidin, 2015;Obadeyi, 2015;Awawory & Marr, 2016;Akingunola, et al, 2018;Fiala, 2018;Khan et al ., 2022;Amanor et al, 2023;Bansah & Adjei, 2023).…”

“…Poverty has become a big challenge for nations worldwide, especially for developing countries (Addae-Korankye, 2012; Kaka & Abidin, 2015;Miled & Rejeb, 2018;Mushtaq & Bruneau, 2019). There is a famous global criticism from Mahatma Gandhi: "Poverty is the worst form of violence," which is a creative new approach as an attempt to bargain for the fundamental problems of developing countries.…”

“…Poverty is a vital phenomenon in every country, and efforts are always made to minimize or even eliminate it if possible (Addae-Korankye, 2012; Kaka & Abidin, 2015;Miled & Rejeb, 2018;Mushtaq & Bruneau, 2019). However, in reality, poverty is still inherent in every aspect of human life, including in Indonesia (Robinson, 2001;Anwar et al, 2023), especially in the Special Region of Yogyakarta, so it requires a comprehensive, integral, and sustainable poverty reduction effort with a target of completing the treatment-extreme poverty in 2024 (Public Relations Special Region of Yogyakarta, 2023).…”

The Effect of Entrepreneurship Education on Micro-entrepreneurial Outcomes Funded by MFIs

“…Microfinance institutions (MFIs) have the potential to reduce poverty and improve the lives of poor people through microcredit (Thu and Duong, 2018). But the studies show that its impact on livelihood and income of micro-entrepreneur is not significant (Kaka, 2017) and in some cases it becomes even negative despite being a powerful financial tool (Crépon et al, 2015). It shows that for the growth of micro-entrepreneurs only credit is not enough, although it is a critical factor (Mwakalikamo, 2020).…”

Does Usage of Islamic Microfinance Products Influence the Income, Education, and Health in Mauritania?

“…Only when those products are used effectively in economic activities can the income level of beneficiaries increase. Several studies have shown the impact of using Islamic microfinance on poverty alleviation, especially the augmentation of income (Farooqi, Qamar, & Chachi, 2017;Kaka et al, 2013;Tafese, 2014;Toindepi, 2016).…”