Nigeria has witnessed many economic and development plans changes over the last few decades. Several reforms and initiatives aimed at poverty reduction and enhancing financial inclusion had been attempted by the Nigerian government and its development partners in the recent time. The purpose of the study is to investigate the effects of financial inclusion on poverty reduction: the moderating effects of microfinance. Data collection techniques employed was self-administered questionnaire. The questionnaire were administered to a total of 384 to the respondents that are microfinance banks customers from the three senatorial districts in Kebbi State Nigeria by using simple random sampling procedures. In analysing the relationship among the variables, a Partial Least Square (PLS)-Structural Equation Modelling (SEM) technique was adopted. The findings of the study revealed that there is a significant relationship between the financial inclusion and poverty reduction. The results further revealed that microfinance positively moderate the relationship between the variables under studies. The paper recommends the financial inclusion to be more robust in the rural areas and to make microfinance a more effective means of poverty reduction other services such as, education loan, technological support loan, skills training, and housing appliance loan should be included in microfinance services.