ASSESSEMENT OF PEOPLES’ PERCEPTION TOWARDS MICROFINANCE BANKS (MFBs) LOANS DELIVERY IN YOBE STATE, NIGERIA

Abstract

AbstractThis study will assess the peoples’ perceptions on microfinance banks loans delivery in Yobe state, Nigeria with a view of improving the life quality, living conditions and government effectiveness on microfinance development of Yobe state. The study employed multi-stage random sampling techniques to selects 300 respondents from the three (3) senatorial zones of Yobe state where 100 respondents per senatorial zone per local government area.. The Local Government areas selected are: Damaturu (Zone A), Potiskum (Zone B) and Jakusko (Zone C). A descriptive statistics for socio-economic characteristics of the respondents and the binomial logistic regression (logit) model was used to analyse the extent and the determinants of peoples’ perception on microfinance banks loans delivery in the study area. The study revealed that household size, Monthly Income, Loan repayment terms and Socio-cultural factors (0.0217, 3.7777, 0.2263 and 0.3153) respectively are directly significant with peoples’ perception on microfinance banks loan delivery while Age of the household head in years, Marital status, Loan Processing Period, Loan approval time, Loan interest rate, Proximity of Banks branches (-0.0038, -0.0993, -0.0665, -0.0759, -0.2177 and -0.0006) respectively are inversely significant with the dependent variable. The research therefore recommends that the government should provide holistic and comprehensive approach toward establishments of more microfinance bank in Yobe state in particular and Nigeria by extension and also the government at all levels should provide wide awareness and campaign on the importance of Microfinance Banks and among others.