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ELIMINATING POVERTY THROUGH MICRO-CREDIT DELIVERY: EXPERIENCE FROM HOST COMMUNITIES
THE UNIVERSITY ADVANCE RESEARCH JOURNAL (2010)
  • Chukwumah Lawyer Obara, Dr
Abstract

This study examines the delivery of micro-cred it schemes as corporate social responslbility strategy tor eliminating poverty In the host cornmunmes of two major 011 and gas corporations In Nigeria. An in-depth review of related I~erature identified two key parameters for assessing tnt. performance of micro-credit schemes, sustainabilny index (SI) and repayment rate (RR), wh i::.~ are strong determinants of outreach or of the propensity to extend the scheme from first tranche to subsequent tranches. In all, 25 schemes implemented in Rivers , Bayelsa, Imo and Delta states of Nigeria were studied (8 by Shell and 17 by Agip). A two-test approach was preferred using one-sample t-test on the one hand and bivariate regression analysis (f-test) on the other hand, The one-sample t-te st compared sample mean with population mean (represented by the industry proxies), and the f-test measured the extent to which repayment rate (RR) contributed to implementing subsequent tranches . It was found in both cases that performance was significantly below expected standards, that repayment rate has a significant influence on outreach, and that it dwindles away by each tranche. It was therefore concluded that the micro-cred it schemes sponsored by majo r oil and gas operators have not contributed significantly to solving the poverty problem. It was recommended among others that extensive research involving baseline studies of the communities should be conducted with a view to hamessing and standardizing tradnlonat credit delivery systems , and that credit should be market-based while donor corporations must accept to detach themselves from the delivery system in order to dispel any negative perception

Keywords
  • ELIMINATING POVERTY,
  • MICRO-CREDIT DELIVERY,
  • EXPERIENCE,
  • HOST COMMUNITIES
Disciplines
Publication Date
2010
Citation Information
Chukwumah Lawyer Obara. "ELIMINATING POVERTY THROUGH MICRO-CREDIT DELIVERY: EXPERIENCE FROM HOST COMMUNITIES" THE UNIVERSITY ADVANCE RESEARCH JOURNAL Vol. 1 (2010)
Available at: http://works.bepress.com/chukwumah_obara/17/