IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 2 NO. 2 2016

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The Assessment of Performance and Sustainability of Nigerian Micro-Finance Banks amid Distortions in the Nigerian Economy (2010-2014)

Abdullahi Tafida Ph.D

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Abstract

This paper is assessing the performance and sustainability of the Nigerian Microfinance Banks (NMFBs) in terms of quality of life, poverty reduction and economic empowerment; employment creation; access to loans; utilization of loans; timely disbursement of loans; increase in monthly income, and; banking habits of the borrowers using logit model, which allow for estimating the probability that an event has occurred or not by predicting a binary dependent outcome from self independent variables. Eighteen (18) NMFBs are selected, three each from the six states; Bauchi, Benue, Kaduna, Kano, Ondo and Rivers covering the period 2010-2014. Primary and secondary methods are used in collecting the data. The main findings showed that quality of life, poverty reduction and economic empowerment; employment creation; access to loans; utilization of loans; timely disbursement of loans; increase in monthly income, and; banking habits formed part of the determinants for assessing the performance and sustainability of NMFBs. Also, this paper summarizes, concludes and recommends that the NMFBs are succeeding despite economic distortions in the country and that more support is therefore required to expand the activities of the NMFBs in the selected areas

keywords:

performance; sustainability; logit model; poverty reduction and economic empowerment.

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