Monday 17 April 2017

Analysis of Microfinance Banks Support to Agricultural Lending in Edo State, Nigeria

Globally, 1.2 billion people are extremely poor (surviving on less than USD 1 a day), and three quarters live in rural areas. Poverty is predominantly a rural phenomenon. Extremely poor people spend more than half of their income to obtain (or produce) staple foods, which account for more than two thirds of their caloric intake. Most of these people suffer from nutritional deficiencies, and many go hungry at certain times of the year. In recent years, development agencies and national governments have renewed their commitment to reducing poverty, hunger and other human deprivations, as evidenced by the Millennium Development Goals. Among other objectives, the goals aim to halve the proportion of people living on less than USD 1 a day by 2015 (from the starting level of 1990). That means cutting the share of extremely poor people in low- and middle-income countries from 28 to 14%.

Agricultural Lending in Edo StateThe goals also call for halving the proportion of people suffering from hunger by 2015. Rural poverty and hunger fell sharply between 1975 and 1990, but the rate of poverty reduction has since slowed. Net aid (that is, official development assistance) to developing countries fell from 0.35% of the gross national income in the countries of the Organisation for Economic Co-operation and Development in 1982-83 to 0.24% in 2002-03.

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