Comparative Poverty Status of Users and Non-Users of Micro Credit in Kwara State, Nigeria

Abstract

The essence of this study is to assess the impact of Micro credit on farmers’ poverty status in Kwara state, Nigeria. 50 users and 100 non-users of Micro credit facilities were randomly selected. Descriptive statistics was used to describe the socio-economic characteristics of the respondents. The determinants of poverty status of the farmers were analyzed using logistic model. The Foster-Greer-Thorbecke (FGT) model was used to analyze the extent of poverty among the farming households. The results show that majority of the users and non-users are married with 92% and 82% respectively. Majority (96%) of the users had some level of formal education while, majority (88%) of the non-users had no formal education. The FGT result shows that the poverty status of non-users is higher than that of the users. Age of the household head and the household size had positive effect on the household’s poverty status.

Micro credit, poverty, income inequality, household income, profitability, Consumer/Household Economics, Food Security and Poverty, C00, C5, Q14,