Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 17 ISSUE 1
Written by Udegbunam Edwin CHINONSO, Onu Inyanda JUSTICE

The study analysed the effect of local level institutions’ (LLIs) microcredit delivery on rural farm households’ poverty status in Girei and Yola South Local Government Areas of Adamawa state, Nigeria. Multistage random sampling was used in selecting one hundred and twenty (120) rural farm households’ member of the local level institution and data were collected through questionnaire administration. The study showed that 58% of the rural farm household head respondents were poor and require N4,955.00K to come out of poverty. This is because their per capita consumption is below the poverty line. Moreover, the Lorenz curve and Gini index of 0.207174 showed that the income distribution and income inequality among the respondents are typical not high. The squared poverty index of 0.17 which measures the severity of the poverty, and took into account of the income distribution and inequalities between the poor and the rich it revealed that the poor rural farm households per person in relation to the population only required 17% (N5,615.67) of poverty line to come out of poverty.The logit regression revealed that microcredit significantly added to the model (poverty status) with Naglekerke R Square = 0.402 and Chi-square = 42.604 and corresponding P-value = 0.001. Therefore, the study recommends the need for the government to formulate policies targeting at improving the welfare of the rural farm households, their source of livelihood and improve the lot of low-paid workers by integrating LLIs into the current poverty alleviation programme of the government and make channels for loan delivery so as to achieve the sustainable development goals of eradicating extreme poverty.

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