Impacts of microfinance banks on women empowerment and poverty reduction in Ekiti State, Nigeria

This study investigated the impacts of microfinance banks on women empowerment and poverty reduction in Ekiti State, Nigeria. A sample of sixty (60) women were selected from the three senatorial districts through simple random sampling techniques. A structured questionnaire was used to obtain information from the women on the impacts of microfinance banks on their businesses. The findings from the study showed that microfinance banks have positive effects on women empowerment as it reduces the poverty level by accessing short loans to run their businesses. In addition to financial gains, microfinance banks provide social empowerment, increasing women’s engagement, decision making and good quality of life. However, issues like exorbitant interest rates, lack of financial knowledge and cultural barriers exist and may prevent these advantages from being fully realised. It was concluded that the presence of microfinance in the society has gone a long way in solving many social and economic problems that are ravaging people’s lives. It was therefore recommended that government should encourage microfinance banks to intensify efforts to provide financial supports and educate the masses by creating awareness of usefulness to enable peoples’ benefit.