Impact of Microfinance Banks on poverty reduction in Nigeria focused on the nexus of licensed Microfinance Banks in Nigeria based on sample case study to poverty reductions. Survey designed method was employed to brainstorm with users of Microfinance Banks on the relationships between poverty reduction and micro-loans, micro-savings and transfer payments which are proxies employed by Microfinance Banks for poverty reduction mechanism. Three hypotheses were raised each for the proxies. The chosen sample size is seven hundred respondents with a completed feedback of five hundred and fifty-three. The statistical technique adapted for the decision tests are Pearson Correlation and Regression analysis. The results showed that all the three proxies have a statistically significant effect on reducing poverty in Nigeria, with micro savings having the largest effect. We recommend a strategic policy effort to encourage the multiplication of licensed Microfinance Banks in the Country and spread of the existing licensed Microfinance Banks. It is recommended that further research be carried out on Microfinance Banks’ Capacity Building and inclusiveness for rural areas and physically challenged customers so that their functions of poverty reduction will be widely spread and felt deeply in the Country.
Keywords: Microfinance Banks, Poverty Reduction, impact of micro loans, impact of micro savings, microfinance transfer payment effects
