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

Abstract

This paper deals with the analysis and computation of the performance of Microfinance Banks in Nigeria in terms of credit performance, portfolio growth, link relative portfolio growth, and categorization of portfolio, food security and employment generation using a case study of Standard Microfinance Bank, Yola. The withdrawal of licenses from 103 out of 407 listed Microfinance Banks in Nigeria was a concern to the researcher, being that Microfinance institutions are the major financial servers to the majorityof Nigerians who are low income earners that are hardly served by the commercial banks.Using a Standard computer package, the Chi-square test application shows that, although the portfolio growth of Standard Microfinance 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%.