Effectiveness of Private Sector Intervention in Micro-Credit Delivery in Delta State of Nigeria: A Case Study of the Shell Petroleum Development Company

Abstract

Abstract

Considering the relevance of microcredit to the economic growth of the farmer and the development of the rural communities, the effectiveness of NGO’s implementing strategy of the Shell petroleum development company’s (SPDCs) micro-credit scheme was assessed in the study. It was aimed at reducing the poverty level of the small-scale farmers in Delta state, Nigeria. A random sample of 519 respondents and 10 NGOs involved in the implementation of the programme were sampled. A multistage sampling technique was used for the study and the data were collected with the aid of well-structured interview schedule questionnaire and the data were analysed using descriptive and logistic regression. The result of the analysis shows that credit volume accessed by the beneficiaries was N50,001–100,000 (about $320–637). Majority of the respondents fell into the non-poor category recording 70.3% and N149,547.13 (about $953) was the poverty line. The beneficiaries commended the scheme, asserting that it was quite empowering socially with leadership development having a mean of 3.41. The greatest challenge faced during the implementation of the scheme was inappropriate management of the project (Scheme) fund by the community representative in the project {(Project Management Committee) (PMC)} with a mean 2.50 and loan default (mean=2.75) which was also an outstanding challenge. Fund for project management were unduly deferred by the sponsoring company (Shell Petroleum Development Company) mean=4.0. Lack of commitment of staff to project implementation strategies was distracting scenario exhibited by the implementing staff. In accessibility to the communities due to poor road network had a mean=3.67. The scheme had a significant impact on the beneficiaries and their likely hood of being non-poor was glaring. It was recommended that the implementing NGOs should improve logistic arrangement and welfare package for staff in order to boost their moral which could boost their performance level.

Keywords: NGOs, micro-credit, poverty, effectiveness

Cite this Article

Alakpa SOE, Onemolease EA. Effectiveness of Private Sector Intervention in Micro-Credit Delivery in Delta State of Nigeria: A Case Study of the Shell Petroleum Development Company. Journal of Crop Science and Technology. 2016; 5(2): 27–40p.