Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
COOPERATIVE FINANCING METHOD AND MICROFINANCE BANKS IN NIGERIA: MODELING RELATIONSHIP FOR CREDIT DELIVERY EFFICIENCY
by Oladejo Moruf O and Oyedele K. S

Abstract:
Despite the various efforts to enhance credit access to the poor and low income group in Nigeria, poverty rate is yet to be significantly reduced. The financial sector reform in Nigeria that led to the establishment of microfinance banks is expected to have effect on cooperative and sustainable development. There is a dearth of Studies in Nigeria regarding Cooperatives and Microfinance Banks relationship for microcredit delivery. This paper investigated the effect of Cooperative Societies and Microfinance banks (MFBs) relationship on credit delivery efficiency in Nigeria. The data collected though the questionnaires and interview were sorted edited and coded in a table. Chi square was used to test the hypothesis on the perception of 138 selected members of Cooperatives and staff of Microfinance banks (MFBs) in Osun state. The result of the Analysis and Chi square test confirm positive effect of the synergy between Cooperatives and MFBs on credit delivery efficiency. The study suggests development of policy framework that would recognize the synergy of Cooperatives and MFBs and as such that there is a formal business relationship between them as a matter of policy. This is expected to stimulate growth of SMEs for sustainable development.

Keywords: cooperative organizations, cooperative financing method, microfinance banks, micro credit, microfinance policy

Download full paper