Microfinance and Poverty Alleviation in Nigeria: A Time Series Analysis (1995–2023)

This study investigates the role of microfinance institutions (MFIs) in alleviating poverty in Nigeria over the period 1995 to 2023. Using the Fully Modified Ordinary Least Squares (FMOLS) approach, the research analyzes the relationship between four dimensions of microfinance activities—total assets, total loans, total deposits, and total investments—and national poverty levels. The findings shows that both total assets and total loans have a significant positive impact on poverty alleviation, while total deposits and total investments are negatively related but not statistically significant. These outcomes highlight the importance of asset expansion and targeted lending in microfinance strategy. The paper concludes with policy recommendations aimed at improving the effectiveness of MFIs in addressing poverty.