The paper interrogates how microfinance institutions represent one of the catalysts for pulling people out of poverty while also promoting financial and social inclusion in the country. However, available evidence revealed that this is far from been attained in practice as evidenced by the growing number of people that live below the poverty line in Nigeria. The paper further examined the problems that undermine microfinance institutions capacity to deliver on their mandate of promoting poverty reduction. The paper concludes with the recommendation that government and its regulatory bodies should review the framework for establishing microfinance bodies and put in place strict mechanisms to ensure that these institutions adhere to their goal of promoting poverty reduction and not that of profit maximization.
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Egharevba et al. (2017) studied this question.