Analysis and Computation of the Performance of Micro Finance Banks in Nigeria (A Case Study of Standard Micro finance Bank, Yola

Abstract

This paper deals with the analysis and computation of the per- formance of Micro nance Banks in Nigeria in terms of credit performance, portfolio growth, link relative portfolio growth, and categorization of portfo- lio, food security and employment generation using a case study of Standard Micro nance Bank, Yola. The withdrawal of licenses from 103 out of 407 listed Micro nance Banks in Nigeria was a concern to the researcher, being that Micro nance institutions are the major nancial servers to the majority of Nigerians who are low income earners that are hardly served by the com- mercial banks. Using a standardard computer package, the chi-square test application shows that, although the portfolio growth of Standard Micro - nance Bank Yola is not averagely 50.20% as claimed by the bank, there is an appreciable growth of 28.96%. But again, with 2005 as the base period, it recorded all time high link relative total portfolio growth of 548%. And other indices such as credit performance of the bank and portfolio by cate- gory indicate that micro nance banking in the country may be heading to the right direction except for grossly inadequate portfolio allocation of 6% for Agriculture which is supposed to be in the driving sit of the food security and employment generation. In trying times for institutions such as Micro - nance Banks which bear bene ts to the masses, it is recommended that either or both the regulatory body or/and the institution should publish a hope- giving-information that will dispel the possibility of the public completely losing hope in such institutions. And also calculated attempt be made to reform the land use act of March 1978 coupled with insurance provision for farmers to ease access to fund.