Sustainability of Micro Finance Institutions: A Comparative Case Study from Kwara State, Nigeria
1BABATUNDE, M. OYEWALE AND 2BAKARE, AKEEM ADEWALE
1&2Department of Economics and Financial Studies
Fountain University, Osogbo, Osun State, Nigeria.
E-mail: babatundewale94@gmail.com, akeembakare2012@gmail.com
ABSTRACT
Recently, the Microfinance Banks (MFBs) have emerged to seal the gap between the many formal and informal financial institutions such as banks, credit unions and moneylender in Nigeria financial institutions. The foremost objective of MFBs is to alleviate poverty by offering loans and related financial services to the poor: individuals who are not self-sufficient. This paper aims to understand the extent to which MFBs have attained sustainability in Nigeria, a developing country scenario. The paper examines the sustainability attained by Microfinance banks in Nigeria by way of measuring their Outreach, Financial sustainability and Welfare impact. The data was collected with the help of Semi-structured Interviews and Focus Group Discussions of Micro Finance Banks in twin cities (Ilorin and Offa) of Kwara state and data collection through secondary sources available in Kwara state on MFB`s. A descriptive analysis was carried out by using triangle theory of Meyer and Zeller (2002). It was discovered that the MFBs of Kwara state, Nigeria are not quite sustainable especially after the reform agenda been introduced by the apex bank (CBN) in the country.