MICROFINANCE BANKS AND WOMEN EMPOWERMENT IN OTUKPO LOCAL GOVERNMENT AREA OF BENUE STATE, NIGERIA

Abstract

This study investigated Microfinance Banks and women empowerment in Otukpo local government area of Benue State, Nigeria. The specific objectives of the study are to examine the roles of MFBs in improving the wellbeing and empowerment of women, assess the effectiveness of MFBs in empowering women, examine the extent to which beneficiaries have utilized their resources to enhance their empowerment, identify the strengths and weaknesses of the MFBs towards empowering women and improving their wellbeing and finally suggest ways by which the MFBs can be repositioned to effectively serve the needs of the women in Otukpo local government area of Benue state. The modernization theory and the women empowerment models were adopted for the study. Using Taro Yamen’s sample size determination technique, 385 respondents were drawn from the population of women who have accessed MFBs services using the systematic random sampling technique. 6 MFBs officials consisting of the management staff and loan officers were purposively selected from the three MFBs studied. Data was collected using semi structured interviews and Key- Informant interviews. The data collected were analysed quantitatively and qualitatively using frequency distribution tables, percentages, charts and with the aid of the SPSS, Pearsons product moment correlation coefficient was used to analyze changes in income of beneficiaries. Findings from this research indicate that Microfinance banks are very useful, viable and effective tools in delivering financial services to women in Otukpo local government area. Furthermore, findings also revealed that access to financial services from MFBs have led to increased income and resources in the hands of the women thereby improving their standard of living and empowering them. Findings from this study have also proved that contrary to the views that Clients / beneficiaries of MFBs do not channel their funds to productive investments capable of empowering them, this study has proved that the women who have accessed financial services from the MFBs have utilized their funds in productive and profitable ventures which has improved their livelihoods and empowered them to have a voice in decision making on the welfare of their households. Despite all these achievements of the MFBs there were also challenges in the process of delivering effective services in these communities. Some of the challenges and weaknesses pointed out by the respondents were shortage of loanable funds, under capitalization, low recovery rate due to seasonal and market fluctuations, lack of Government’s commitment to fund MFBs and changes in government policies also the issue of e-payment, non -payment of salaries etc. The women pointed out the smallness of the loans, short repayment period, seasonal and market fluctuations as some of their challenges. The study therefore recommends cooperation between the formal and informal financial sectors, increased capitalisation, increase in loan size, capacity building, infrastructural development, effective networking among MFBs as ways of improving the operations of MFBs for effective service delivery.