Journal of Economics, Management and Trade

Microfinance banks in Nigeria serve very vital roles in the country’s financial system. They offer financial services to the populace. Nigeria is a developing economy where many Small and Medium Enterprises struggle with capacity building and suffer from lack of financial inclusiveness. In addition, Nigerian economy is capitalist focused where survival of the fittest is a defining factor, thus the banking system lacks financial inclusiveness of physical challenged entrepreneurs especially in Abia State that is a commercial State in Nigeria. This research is centered on finding out the contributions of Microfinance Banks’ entrepreneurship capacity building and financial inclusiveness that are instrumental in fostering economic growth which inversely leads to poverty reductions in the Country.  Survey designed method was used to interrogate seven hundred users of Microfinance Banks as to the Banks’ financial inclusiveness and capacity buildings that catalyzes into poverty reduction efforts in the Country. Adequate hypotheses were raised and statistical technique adapted for the decision tests are Pearson Correlation and Regression analysis. The results showed that the two proxies for poverty reduction in the Country have statistically significant effect on reducing poverty in Nigeria. We recommend that key focus should be placed on microfinance banks’ capacity building and institution of special facility for physically challenged customers. Furthermore, it is important to look into laws and policies that control microfinance institutions in Nigeria. We recommend that further studies be carried out on the effects of poverty reduction policies on the longevity and efficiency of microfinance institutions in Nigeria.