Microcredit and poverty reduction (a focus on Ibadan North Local Government Area, Oyo State, Nigeria)

Micro-credit is a veritable tool to combating poverty. Poverty is a condition typified by deprivation of basic human needs such as food, safe dwelling place, safe drinking water and their likes. The thrust of this work was to examine the impact of Microfinance on poverty reduction before and after procurement of credit within Ibadan North Local Government Area, Ibadan, Oyo State, Nigeria. The research data collection and analysis were obtained from questionnaires. The microfinance tool has roused the interest of academics, policy makers and practitioners, and it has demonstrated huge potential for lending to poor households and has the capacity to help expand the business outlay of the small and medium scale entrepreneurs. Majority of the respondents were female (64%),married (90.5%),in monogamous marriages (80%),traders (55.3%),live in flats (62.5%),possess standard functional generators (62.5%),applied for loans from Microfinance Institutions (MFIs) (88.4%),received loans (92.1%),reported asset procurement after receiving the loans (80.4%) and reported that their business expanded after receiving the loans (85.9%).From the foregoing, it was revealed that microfinance credit scheme among the low-income market traders significantly brought about poverty reduction. Provision of microcredit to low-income market traders has the capacity to strengthen their small businesses, and if well-structured within the household socio-economic space, it has the potential to enhance local and national development.Keywords: Microcredit, poverty reduction, household, market traders, developmen

A comprehensive review of barriers to a functional Zakat system in Nigeria: what needs to be done?

Purpose: Muslims in Nigeria, like in many Muslim-majority countries, are striving to have a functional Zakat system in search of solutions to the perennial problem of poverty and its damning consequences. Nevertheless, there are still unsettled concerns arising from the current and widespread implementation of dissimilar (diverse) approaches to the Zakat system in various parts of the country. The purpose of this paper is to review comprehensively what are the hindrances of a vibrant Zakat system and how far the identified impediments may affect the system in the Nigerian context.Design/methodology/approach:The methodology adopted is the review of extant relevant literature in the field of scholarly publications.Findings: The findings of this study revealed that the fragmented implementation of the Zakat system within the context of the Nigerian democratic system of government lead to the weak governance with respect to law, administration and management; lack of a generally accepted fatwa from the Muslims scholars (Ulamas); absence of Zakat accounting standard; and low compliance behavior are the major barriers that require the attention of government and other stakeholders such as the traditional leaders, the accounting regulatory bodies, the Ulamas, as well as the economic and accounting researchers.Practical implications: It was recommended that the stakeholders should make concerted efforts toward ensuring success of the Zakat system for attaining salvation in the hereafter and for social security, as well as economic prosperity. Originality/value: The paper is the first paper that comprehensively reviews previous literature in the Zakat environment on factors that become barriers to implement a comprehensive Zakat system in Nigeria