THE IMPACT OF MICROFINANCE SERVICES ON WOMEN’S ECONOMIC EMPOWERMENT IN BALI METROPOLIS, TARABA STATE, NIGERIA

Abstract

This paper examines the impact of microfinance services on women’s economic empowerment in Bali Metropolis, Taraba State, Nigeria. It asks whether, and through what mechanisms, access to micro-loans, savings, training, and advisory services translates into measurable gains in income, savings, business growth, and household decision-making power for women beneficiaries in a semi-urban Middle Belt setting. Anchored on Kabeer’s Empowerment Theory and Social Capital Theory, the study adopted a descriptive survey design. Structured questionnaires were administered to one hundred (100) women beneficiaries of microfinance institutions operating in Bali, including LAPO Microfinance Bank, Accion, and community cooperative societies. Data were analysed using simple percentages and frequency distributions with the aid of SPSS. Findings reveal that 75.0% of respondents accessed loan services, 68.0% used savings facilities, 45.0% received business training, and 40.0% benefited from advisory support. Seventy per cent reported increased income, 65.0% reported higher personal savings, 60.0% recorded business expansion, and 55.0% indicated greater involvement in household financial decisions. However, 65.0% cited high interest rates, 50.0% lack of collateral, and 40.0% short repayment periods as binding constraints. The paper argues that microfinance is a necessary but insufficient instrument of women’s empowerment: it enlarges resources and agency, yet its transformative potential is limited by the pricing, tenor, and non-financial architecture of current products. It recommends interest-rate moderation, longer repayment tenors, mandatory pre-loan training, and gender-sensitive product design.