An Assessment of the performance of Microfinance Institutions in Nigeria

Abstract

Microfinance is created in response to the missing credit market for the poor. This is attributed to the fact that Conventional financial sector has not been able to take care of the low income group and the poor. The study finds out if the liabilities of microfinance institutions are more than their assets. The Study obtained secondary data from mix market information exchange and was analyzed using t-test. The result revealed that the liabilities of microfinance institutions are far more than their assets. In conclusion, it is observed that microfinance has not significantly reduced poverty in Nigeria, their liabilities outweigh their assets.

Key words: Microfinance; Micro-credit; Poverty; Debt/Equity ratio; Nigeria