Micro finance banks a poverty reduction tool in Gombe Local Government Area, Gombe State, Nigeria

• Main Authors: Shuaibu, Kabiru, Yusuf, Abubakar, Pantamee, Abdurrahman Adamu
• Format: Conference or Workshop Item
• Language: English
• Published: 2017
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/24579/1/SICONSEM%202017%20146%20148.pdf; http://repo.uum.edu.my/24579/

Purpose - The aim of the study is to examine the role of micro finance banks in fighting poverty in Gombe Local Government Area, Gombe state, Nigeria.The issue of poverty has been a major concern to many nations, particularly the developing countries.National Bureau of Statistics (2010) concluded that Gombe state is one among the five northern states are the poorest in the country with 69.1% Poverty rate.Problem Statement In spite of objectives of establishment of micro finance banks in Gombe state, various reports reveal that there is a problem. For instance Kwande (2012) a facilitator of an NGO programmes for poverty alleviation in Gombe stated that “micro finance in Gombe state is yet to show any tangible impact on the target citizens” Objectives of the study - The objectives of this study are (i) to determine the state of poverty in Gombe local government area. (ii). to examine the role of Gombe micro finance Bank Limited in alleviating poverty in Gombe Local Government area. (iii). to identify major challenges of Gombe Micro Finance bank.Methodology - Primary data were collected from total of 100 beneficiaries of Gombe micro finance bank limited by simple random sampling; structured questionnaires were the instrument for data collection. Simple descriptive statistics such as means, percentages and frequencies were used to analyze the data collected from respondents.Findings - The study found that the used of the loan obtained from Gombe micro finance has increased the income of the respondents.This is an indication that Gombe micro finance may served as a poverty reduction tool in Gombe Local Government Area of Gombe state.