An Assessment of Peoples’ Perception Towards Microfinance Banks (MFBs) Loans Delivery in Yobe State, Nigeria

Abstract

This study will assess the peoples’ perceptions on microfinance loans delivery in Yobe state, Nigeria with
a view of improving the life quality, living conditions and government effectiveness on microfinance
development. The study used 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 employed to analyse the extent and the determinants of
peoples’ perception on microfinance banks loans delivery in the study area from the 296 retrieved
quetionnaires. 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 and the Age of the household head, Marital,
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 a holistic and
comprehensive approach toward establishment 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.