The growing awareness of the potential of microfinance in poverty reduction, economic growth and development, coupled with the emergence of several highly successful and fast growing microfinance institutions, has effectively put the issue of microfinance on the political agenda of most developing countries. Well performing financial institution have basic role to play in fostering development. This study evaluates the impact of Microfinance on poverty alleviation in Nigeria. Both primary and secondary data were used. Descriptive analysis were used for the study for it's convenient for this research. The study revealed that Microfinance Bank has impacted on poverty on by lending to the poorest of the poor in the rural areas, and that Microfinance bank has helped in supporting the borrowers to succeed. The study recommend that government should provide low interest credit facility to microfinance institutions to enable them meet up with the challenges of increase in patronage