AN ASSESSMENT OF PERFORMANCE OF MICRO-FINANCE BANKS IN FINANCING AGRICULTURAL COOPERATIVE SOCIETIES IN CENTRAL SENATORIAL ZONE OF KANO STATE, NIGERIA

Author: Aminu Umar Danazumi
Department: Cooperative Economics
Affiliation: Nnamdi Azikiwe University Awka

This research work was to “Evaluate The Performance of Micro-Finance Banks: In Financing Agricultural Cooperative Societies in Central Senatorial Zone in Kano State of Nigeria”. Micro-Finance Bank s play a significant role in the area of promoting agricultural cooperative societies, Micro- Finance Bank were primary introduced by government to minimize the hardship facing agricultural cooperative societies in obtaining loans. The research examined the sources of funds available for the societies, analyze the portion of the cooperative society share capital financed through the Micro-Finance Bank, identify the amount of loan applied for, approved, disbursed to the society, and repaid, evaluate the relative importance of loan obtained information to capitalization of the societies, and to identify problems encountered by the societies in applying and obtaining loan. Data were collected from 150 agricultural societies and 15 staff of the Micro-Finance Banks. Structured questionnaires were distributed and returned. Collected data were analyzed using descriptive statistic frequency tables and regression analysis. Average loan disbursed society amounted to about N3million per society which represent 212% of their capital. Determinants of access to loan were found to include Membership size, age of society and capitalization. Also the MFBs were able to recover 63% of loans to cooperatives. Membership size and loan obtained were major factors influencing recovery. The study concluded that MFBs are an important channel for financing of agricultural cooperatives in Kano State.

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