Pakistan Journal of Social Sciences
Incorporating NGOs in Microcredit Delivery: Prospect and Challenges in Delta State, Nigeria
Authors : S.O.E. Alakpa and E.A. Onemolease
Abstract: The study assessed the prospects and challenges of using NGOs
as strategy for micro-credit delivery using Shell Petroleum micro-credit scheme
in Delta State, Nigeria for a case study. Ten NGOs involved in the implementation
of the Shell micro-credit scheme were sampled. Data from 519 participants and
non-participants in the scheme were analysed using frequency counts, mean and
t-test. The study revealed that there was prospects in using NGO for micro-credit
delivery as the income of participants in the NGO-managed scheme (
282,895.14) was significantly higher than that of non-participants (
165,971.54). However, a number of challenges were associated with this strategy
namely: delay in service payment charge by the sponsoring agency, i.e., SPDC
(mean = 4.00), difficulty in accessing communities (mean = 3.67), poor staff
commitment (3.44) and failure of beneficiary group to adhere to loan management
guidelines (= 3.22). Closer monitoring of the beneficiary groups by the NGOs
and enforcement of appropriate selection criteria as well as provision of adequate
logistics to improve NGO’s delivery was recommended.
How to cite this article:
S.O.E. Alakpa and E.A. Onemolease, 2013. Incorporating NGOs in Microcredit Delivery: Prospect and Challenges in Delta State, Nigeria. Pakistan Journal of Social Sciences, 10: 159-165.