• No results found

Descriptive statistics was used to summarize the demographic information and the research question in this study while the hypothesis was tested using t-test analysis

Table 4.1: Sex

Frequency Percent Valid Percent

Cumulative Percent

Valid

male 12 60.0 60.0 60.0

Female 8 40.0 40.0 100.0

Total 20 100.0 100.0

In the table 4.1 above, the male respondents are 12(60%), whereas the female respondents are 8(40%). This shows that the number of male respondents are higher than the number of the female respondents.

Table 4.2 Marital status of the respondents Frequency Percent Valid

Percent

Cumulative Percent

Valid

Single 13 65.0 65.0 65.0

married 7 35.0 35.0 100.0

Total 20 100.0 100.0

From the table above, the results obtained shows that the number of the respondents who are single in Bethel Microfinance bank is 13(65%) whereas the number of respondents who are married is 7(35%) from the result it shows that majority are of the respondents in Bethel Microfinance Bank are single?

Table 4.3 Age bracket of the respondent

Frequency Percent Valid Percent

Cumulative Percent

Valid

less than 25 years 6 30.0 30.0 30.0

26-30 9 45.0 45.0 75.0

31 and above 5 25.0 25.0 100.0

Total 20 100.0 100.0

From the table above, the respondents who falls within the age bracket of less than 25 years are 6(30%), those who falls within the age bracket of 26-30 years are

9(45%) and those who falls within the age bracket of 31 and above are 5(25%).

Hence we conclude that majority of the respondent falls within the age bracket of 9

Table 4.4 Experience

Frequency Percent Valid Percent

Cumulative Percent

Valid

less than 3years

11 55.0 55.0 55.0

4-6 years 7 35.0 35.0 90.0

More than 6 years

2 10.0 10.0 100.0

Total 20 100.0 100.0

From the table above, the results obtained shows that the number of respondents who has a working experience less than 3years are 11(55%), those with a working experience within the age bracket of 4-6 years are 7(35%), and those with a working experience above 6 years are 2(10%). Hence from the result, majority of the respondents has a working experience less than 3years.

Table 4.5 Qualification

Frequency Percent Valid Percent Cumulative Percent Valid

Bachelor 10 50.0 50.0 50.0

Master 6 30.0 30.0 80.0

PhD 4 20.0 20.0 100.0

Total 20 100.0 100.0

Table 4.2.5 which is descriptive table of values showing the respondents qualifications shows that the respondents with bachelor’s degree are 10(50%), those maters certificate are 6(30%) whereas those with PhD certificate are 4(20).

Hence from the result, it can be vividly ascertained that the majority of the respondents has bachelor’s degree.

Table 4.6 Position in the organization

Frequency Percent Valid Percent

Cumulative Percent

Valid

Administrative department

8 40.0 40.0 40.0

sales department 8 40.0 40.0 80.0

finance department 4 20.0 20.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents position in the organization, from the result, the administrative staff are 8(40%), sales department are 8(40%), finance department are 4(20%), hence from the result, majority of the respondents are in administrative and finance department.

Table 4.7 Lending and loan recovery have great significant impact on the Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree

7 35.0 35.0 35.0

agree 6 30.0 30.0 65.0

disagree 5 25.0 25.0 90.0

strongly disagree

2 10.0 10.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on lending and loan recovery have great significant impact on the Nigeria Microfinance bank, it

can be ascertain that 7(35%) affirmed strongly agree, 6 (30.0%) affirmed agree, 5(25%) affirmed disagree, 2(10.0 %) affirmed strongly agree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that lending and loan recovery have significant impact on the Nigeria Microfinance bank.

Table 4.8 Lending and loan recovery affect the performance of the Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree

9 45.0 45.0 45.0

agree 6 30.0 30.0 75.0

disagree 4 20.0 20.0 95.0

strongly disagree

1 5.0 5.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on lending and loan recovery affect the performance of the Nigeria Microfinance bank, it can be ascertain that 9 (45%) affirmed strongly agree, 6(30%) affirmed agree, 4(20%) affirmed disagree, 1(5%) affirmed strongly disagree. From the result majority of the respondent affirmed agree. Hence we conclude that lending and loan recovery affect the performance of the Nigeria Microfinance bank.

Table 4.9 Increase in the lending and loan recovery increases the performance of the Nigeria microfinance bank.

Frequency Percent Valid Percent Cumulative Percent

Valid

strongly agree

6 30.0 30.0 30.0

Agree 9 45.0 45.0 75.0

Disagree 2 10.0 10.0 85.0

strongly disagree

3 15.0 15.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on increase in the lending and loan recovery increases the performance of the Nigeria Microfinance bank, it can be ascertain that 6 (30%) affirmed strongly agree, 9(45%) affirmed agree, 2 (10%) affirmed disagree, 3(15%) affirmed strongly disagree. From the result majority of the respondent affirmed agree. Hence we conclude that increase in the lending and loan recovery increases the performance of the Nigeria Microfinance bank.

Table 4.10 Lending has no correlation with loan recovery in Nigeria microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree

8 40.0 40.0 40.0

agree 5 25.0 25.0 65.0

disagree 5 25.0 25.0 90.0

strongly disagree

2 10.0 10.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on lending has no correlation with loan recovery in Nigeria Microfinance bank, it can be ascertain that 8 (40%) affirmed strongly agree, 5(25%) affirmed agree, 5(25%) affirmed disagree, 2(10%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that lending has no correlation with loan recovery in Nigeria Microfinance bank.

Table 4.11 Promoting lending and loan recovery promotes the performance of the Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree 12 60.0 60.0 60.0

Agree 4 20.0 20.0 80.0

disagree 2 10.0 10.0 90.0

strongly disagree

2 10.0 10.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on promoting lending and loan recovery promotes the performance of the Nigeria Microfinance bank., it can be ascertain that 12(60%) affirmed strongly agree, 4(20%) affirmed agree, 2(10%) affirmed disagree, 2(10%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that promoting lending and loan recovery promotes the performance of the Nigeria Microfinance bank.

Table 4.12 Inadequate business plan causes default in loan repayment in Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree

5 25.0 25.0 25.0

Agree 6 30.0 30.0 55.0

disagree 5 25.0 25.0 80.0

strongly disagree

4 20.0 20.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on inadequate business plan causes default in loan repayment in Nigeria Microfinance bank, it can be ascertain that 5(25%) affirmed strongly agree, 6(30%) affirmed agree, 5(25%) affirmed disagree, 4(20%) affirmed strongly disagree. From the result majority of the respondent affirmed agree. Hence we conclude that inadequate business plan causes default in loan repayment in Nigeria Microfinance bank.

Inadequate feasibility study causes default in loan repayment in Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent Valid strongly

agree

5 25.0 25.0 25.0

agree 7 35.0 35.0 60.0

disagree 5 25.0 25.0 85.0

strongly disagree

3 15.0 15.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on inadequate feasibility study causes default in loan repayment in Nigeria Microfinance bank, it can be ascertain that 5 (25%) affirmed strongly agree, 7(35%) affirmed agree, 5(25%) affirmed disagree, 3(10%) affirmed strongly disagree. From the result majority of the respondent affirmed agree. Hence we conclude that inadequate feasibility study causes default in loan repayment in Nigeria Microfinance bank.

Table 4.13 Lack of service of internal financial auditor causes default in loan repayment in Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree

9 45.0 45.0 45.0

Agree 5 25.0 25.0 70.0

Disagree 4 20.0 20.0 90.0

strongly disagree

2 10.0 10.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on lack of service of internal financial auditor causes default in loan repayment in Nigeria Microfinance bank, it can be ascertain that 9(45%) affirmed strongly agree, 5(25%) affirmed agree, 4(20%) affirmed disagree, 2(10%) affirmed strongly disagree.

From the result majority of the respondent affirmed strongly agree. Hence we

conclude that lack of service of internal financial auditor causes default in loan repayment in Nigeria Microfinance bank.

Table 4.14 Inadequate planning causes default in loan repayment in Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree 8 40.0 40.0 40.0

Agree 4 20.0 20.0 60.0

disagree 4 20.0 20.0 80.0

strongly disagree

4 20.0 20.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on inadequate planning causes default in loan repayment in Nigeria Microfinance bank, it can be ascertain that 8(40%) affirmed strongly agree, 4(20%) affirmed agree, 4(20%) affirmed disagree, 4(20%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that inadequate planning causes default in loan repayment in Nigeria Microfinance bank

Table 4.15 Business failure causes default in loan repayment in Nigeria Microfinance bank.

Frequency Percent Valid Percent Cumulative Percent

Valid

strongly agree 5 25.0 25.0 25.0

Agree 6 30.0 30.0 55.0

disagree 6 30.0 30.0 85.0

strongly disagree 3 15.0 15.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on business failure causes default in loan repayment in Nigeria Microfinance bank, it can be ascertain that 5(25%) affirmed strongly agree, 6(30%) affirmed agree, 6(30%) affirmed disagree, 3(15%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that business failure causes default in loan repayment in Nigeria Microfinance bank.

Table 4.16 Increase in lending increases the chances of loan recovery in Nigeria Microfinance bank.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree 4 20.0 20.0 20.0

Agree 6 30.0 30.0 50.0

disagree 6 30.0 30.0 80.0

strongly disagree

4 20.0 20.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on increase in lending increases the chances of loan recovery in Nigeria Microfinance bank, it can be ascertain that 4(20%) affirmed strongly agree, 6(30%) affirmed agree, 6(30%) affirmed disagree, 4(20%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that increase in lending increases the chances of loan recovery in Nigeria Microfinance bank.

Table 4.17 Changes in lending ability of the Nigeria Microfinance bank causes the loan recovery to change in the positive direction.

Frequency Percent Valid Percent

Cumulative Percent

Valid

strongly agree

9 45.0 45.0 45.0

Agree 6 30.0 30.0 75.0

disagree 4 20.0 20.0 95.0

strongly disagree

1 5.0 5.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on changes in lending ability of the Nigeria Microfinance bank causes the loan recovery to change in the positive direction, it can be ascertain that 9(45%) affirmed strongly agree, 6(30%) affirmed agree, 6(30%) affirmed disagree, 4(20%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree.

Hence we conclude that changes in lending ability of the Nigeria Microfinance bank causes the loan recovery to change in the positive direction.

Table 4.18 Microfinance bank lending has causality relationship with the loan recovery

Frequenc y

Percent Valid Percent

Cumulative Percent

Valid

strongly agree 6 30.0 30.0 30.0

Agree 6 30.0 30.0 60.0

Disagree 5 25.0 25.0 85.0

strongly disagree

3 15.0 15.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on Microfinance bnk lending has causality relationship with the loan recovery, it can be ascertain that 6(30%) affirmed strongly agree, 6(30%) affirmed agree, 5(25%) affirmed disagree, 3(15%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that Microfinance bnk lending has causality relationship with the loan recovery.

Table 4.19 Loan recovery of the Nigeria Microfinance bank causes lending ability to increase.

Frequenc y

Percent Valid Percent

Cumulative Percent Valid

strongly agree 10 50.0 50.0 50.0

Agree 5 25.0 25.0 75.0

disagree 3 15.0 15.0 90.0

strongly disagree

2 10.0 10.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on loan recovery of the Nigeria Microfinance bank causes lending ability to increase, it can be ascertain that 10(50%) affirmed strongly agree, 5(25%) affirmed agree, 3(15%) affirmed disagree, 2(10%) affirmed strongly disagree. From the result majority of the respondent affirmed strongly agree. Hence we conclude that loan recovery of the Nigeria Microfinance bank causes lending ability to increase.

Table 4.20 The rate of credit advances of the Nigeria Microfinance bank is high.

Frequen cy

Percent Valid Percent

Cumulative Percent

Vali d

strongly agree

7 35.0 35.0 35.0

Agree 6 30.0 30.0 65.0

Disagree 4 20.0 20.0 85.0

strongly disagree

3 15.0 15.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on the rate of credit advances of the Nigeria Microfinance bank is high, it can be ascertain that 7(35%) affirmed strongly agree, 6(30%) affirmed agree, 4(20%) affirmed disagree,

3(15%) affirmed strongly disagree. From the result the rate of credit advances of the Nigeria Microfinance bank is high.

Table 4.21 The rate of credit advances of the Nigeria Microfinance bank is not encouraging.

Frequen cy

Percent Valid Percent

Cumulative Percent

Vali d

strongly agree

6 30.0 30.0 30.0

Agree 6 30.0 30.0 60.0

Disagree 5 25.0 25.0 85.0

strongly disagree

3 15.0 15.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on the rate of credit advances of the Nigeria Microfinance bank is not encouraging, it can be ascertain that 6(30%) affirmed strongly agree, 6(30%) affirmed agree, 5(25%) affirmed disagree, 3(15%) affirmed strongly disagree. From the result the rate of credit advances of the Nigeria Microfinance bank is not encouraging.

Table 4.22 Loan advances of the Nigeria Microfinance bank is relatively low.

Frequen cy

Percent Valid Percent

Cumulative Percent

Vali d

strongly agree

5 25.0 25.0 25.0

Agree 5 25.0 25.0 50.0

disagree 5 25.0 25.0 75.0

strongly disagree

5 25.0 25.0 100.0

Total 20 100.0 100.0

The above table of values shows the respondents opinion on the loan advances of the Nigeria Microfinance bank is relatively low, it can be ascertain that 5(25%) affirmed strongly agree, 5(25%) affirmed agree, 5(25%) affirmed disagree, 5(25%) affirmed strongly disagree. From the result the rate of credit advances of the Nigeria Microfinance bank is not encouraging.

HYPOTHESES TEST

HYPOTHESIS ONE: LENDING AND LOAN RECOVERY HAVE NO SIGNIFICANT CORRELATION IN NIGERIA MICROFINANCE BANK

One-Sample Test

Test Value = 0

t df Sig.

(2-tailed)

Mean Difference

95% Confidence Interval of the

Difference

Lower Upper

Lending and loan recovery have no significant

correlation in Nigeria

microfinance bank.

8.097 19 .000 1.75000 1.2976 2.2024

From the t-test result, the computed t-statistics (8.097) is greater than the tabulated t-statistics (2.086), hence we accept the alternate hypothesis H1 which state that lending and loan recovery have significant correlation in Nigeria microfinance bank. Therefore we conclude that lending and loan recovery have significant impact in Nigeria microfinance bank.

Hypotheses Two

There Is No Causality Relationship Between Lending And Loan Recovery In Nigeria Microfinance Bank.

One-Sample Test

Test Value = 0 t Df Sig.

(2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower Upper

There is no causality relationship between lending and loan recovery in Nigeria microfinance bank.

8.643 19 .000 2.25000 1.7052 2.7948

From the t-test result, the computed t-statistics (8.643) is greater than the tabulated t-statistics (2.086), hence we accept the alternate hypothesis H1 which state that there is causality relationship between lending and loan recovery in Nigeria microfinance bank. Therefore we conclude that there is causality relationship between lending and loan recovery in Nigeria microfinance bank.

4.4.1 Discussion of Results

From the analysis of the data presented the findings pointed out that the respondents do agree that there is correlation between lending and loan recovery on the Nigeria microfinance bank.

Secondly it was found out that the inadequate business plan, inadequate feasibility study, lack of service of internal auditor, inadequate planning and business failure are the causes of default in loan recovery in Nigeria microfinance bank.

Thirdly, it was also found out that the direction of the causality relationship between lending and loan recovery in Nigeria microfinance bank is positive.

Finally it was found out that the rate of credit advances of the Nigeria microfinance bank is high

On the bases of hypotheses testing, lending and loan recovery have significant correlation in Nigeria.

Also, there is causality relationship between lending and loan recovery in Nigeria microfinance bank.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 5.1 Introduction

This chapter deals on the discussion of the findings, conclusions of the study, recommendation, suggestions for further studies.