IMPACT OF THE MICROCREDIT SCHEME OF THE BANK OF AGRICULTURE ON LIVING STANDARD OF THE LESS PRIVILEGED IN BORNO STATE, NIGERIA.

Uba, I.A., Adefila, J.O.* and Yusuf, R.O.

Bank of Agriculture (BOA) is the largest poverty alleviation and rural development finance institution in Nigeria. It has a priority objective of reaching less privileged groups with micro credit facilities to enable the beneficiaries improve their living standard. The study aimed at assessing the impact of the BOA micro credit on the beneficiaries’ living standard in Borno State, Nigeria. The study covered ten local government areas where 164 samples were purposively selected. The study employed both questionnaire and interview as research instruments. Both descriptive and inferential statistical techniques were used for the analysis of data. The result shows that males (66.5%) dominated the loan scheme and that they are mostly married (87.2%). Also, only 29.9% of borrowers attained secondary education and they are mostly farmers (56.1%). The determinant of less privileged group ranges from those with low income (28.1%) to victim of violence (18.9%). Perhaps the greatest challenge posed by Bank of Agriculture to beneficiaries is the late disbursement of loan facility (41.0%) and long distance to the bank (35.9%). Chi square test revealed (p-value .000) for all the indicators of standard of living thereby rejecting the null hypothesis at .05 alpha value. There is therefore, significant difference between living standards before and after utilization of micro credit facility. On the basis of the findings, the study recommends the establishment of more Bank of Agriculture with a view to reducing distance covered by the potential beneficiaries. Also, the interest rate should be reduced to enable less privileged to benefit from the scheme. Moreover, government can reach out less privileged groups through provision of anti-poverty services such as basic education, health care, housing, portable water and rural electricity.

Key words: Bank, Less Privileged, Living Standard, Microcredit, Poverty.