Microfinancing and Women in Rural Areas in Ogun State, Nigeria

The issue of microfinancing is one that has received attention in recent times as it is expected to help alleviate the poverty level of developing countries like Nigeria. Some empirical findings revealed that micro-finance functions as a panacea toward empowering women. Thus, this research intends to evaluate how microfinancing has affected women in rural areas using Yewa south local government as a case study. The specific objective is to examine how microfinance credit has improved the standard of living of women to be able to provide basic necessities for their families like education, housing and food. Primary data was used with the aid of structured questionnaires that were distributed to 245 respondents across 5 areas in the local government (Ilaro, Owode, Eredo, Irinja, Idogo), and secondary data based on what other authors have written on microfinance. The data used is primary data withe the use of a questionnaire administered. The outcome intends to contribute to women empowerment in Nigeria which will increase the standard of living. The study revealed some salient facts. The results show that participation in microfinancing has a enormous positive impact on household standard, income and women’s empowerment. However, all the respondents expressed sorrow over the high interest rates being charged by the Micro Finance Banks and the shorter repayment period. The main limitation is time constraint. Future research should engage the quantitative methods an larger quantitative samples to extend this work. The chapter recommends that the regulatory authority monitor the conduct of most of the MFIs vis a vis the high interest rate and training: as one of the core services of microfinance institutions, should be vigorously implemented so as to improve the performance of the women client.