EFFECTIVENESS OF MICROFINANCE BANK INITIATIVES IN PROMOTING SUSTAINABLE LIVELIHOOD PRACTICES AMONG FARMERS IN KWARA STATE, NIGERIA
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Date
2025
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Abstract
The low-income poor rural entrepreneurs, farmers inclusive, are often excluded from
conventional bank benefits in terms of access to financial initiatives. The introduction of
microfinance banks across Nigeria by the Government was to enhance financial inclusion to
cater to these vulnerable groups. This study, thus, aimed to assess the effectiveness of
microfinance bank (MFB) initiatives in promoting sustainable livelihood practices among
rural communities in Kwara State, Nigeria. A cross-sectional research design method was used
to select 143 farmers following a multistage sampling procedure. Primary data were collected
with structured interview schedule and analyzed using descriptive statistics and regression
analysis. Results revealed that 61.0% of the farmers were males, educated (61.0%), with mean
age of 34 years. The results also revealed that MFBs played a significant role in providing
capacity-building and support services (Mean Score=4.23) which ranked highest in their
effectiveness, while increase access to credit and small business was ranked least (MS=3.27).
The findings further reveal that limited outreach and accessibility and insufficient long-term
funding and investment were the most ranked challenges by the farmers in the study area. The
regression analysis further highlighted that education (β = 0.273, p = 0.002) and marital status
(β = -0.285, p = 0.003) significantly influenced the impact of rural finance, emphasizing the
role of socioeconomic factors in shaping financial outcomes. The study concluded that
improving outreach, tailoring financial products, enhancing financial literacy, and addressing
infrastructure gaps could ameliorate the constraints facing rural finance programs in
supporting sustainable livelihoods. The study therefore recommends the expansion of MFB
services to expand outreach and enhancing financial literacy programs to maximize the
benefits of these initiatives.