TY - JOUR T1 - MFBS CLIENT-ENTERPRISE PROFITABILITY AND LOAN FAILURE IN OGUN STATE NIGERIA AU - Adurayemi, Adu Cecilia AU - Sunday, Owualah, İkechukwu AU - Abiola, Babajide, Ayopo PY - 2019 DA - April DO - 10.18769/ijasos.550363 JF - IJASOS- International E-journal of Advances in Social Sciences JO - IJASOS PB - OCERINT International Organization Center of Academic Research WT - DergiPark SN - 2411-183X SP - 386 EP - 393 VL - 5 IS - 13 LA - en AB - The studyinvestigated the client-enterprise profitability and loan failure ofmicrofinance banks (MFBs) borrowers in Ogun State with a population of fortyseven MFBs where twenty MFBs were selected as sample size for this study. Thesurvey design was used through the administration of questionnaire. The linearregression method was used in analysing data and it was found out that effective monitoring and constant recordchecking was ensured by the microfinance banks’ staff that made the borrowerskeep records of their business transactions through the positive correlationwith loan size structuring, (X2 =171.859; p-value<0.01 andcorrelation coefficient =0.416; p-value <0.01); enterprise profitabilityfurther confirmed the highest hazard on period of default with further evidencefrom the Omnibus tests ofmodel coefficients (X2 = 38.645,degree of freedom=5, P-value<0.001) as indicated in the statisticalrelevance of the model. It was recommended that there should be aninteractive session (interview) between the loan manager and borrower for theestablishment of facts stated in the loan request form, quality cash-flowanalysis of enterprises should be properly done before loan is granted to SMEslikewise there should be effective monitoring of loan usage by monitoring teamof the microfinance banks to avoid diversion. KW - enterprise profitability KW - loan failure KW - record –keeping KW - loan size CR - Adu, C.A (2013).Small and medium scale enterprises funding in Nigeria: Prospects and Challenges.Crawford Journal of Business & Social Sciences, 3(1)17-23 Acha, I. (2008).Microfinance banks in Nigeria: Problems and prospects. Journal of Finance and Accounting, 1(5), 106-111 Ajah, E., Eyo, E.,& Abang, S (2013).Repayment performance among cassava and yam farmers Under Nigerian Agricultural Bank Smallholders Loan Scheme in Cross-Rivers. British Journal of Economics, Management and Trade, 3(4):453-467 Bhuiya, A (2015). Why did most microfinance banks fail? Guardian Newspaper, January 25. The Managing Director of Asha Microfinance Bank, Ikeja, Lagos Babajide, A. A., Taiwo, J. N., and Isibor A. (2015). Micro-savings mobilisation innovation And poverty alleviation in Nigeria, Mediterranean Journal of Social Sciences, 6(4),375 – 378 Christen, P., Rhyne, E., Vogel, R., & McKean, C. (2001). Maximising the outreach of micro-enterprise finance: An analysis of successful microfinance programs, USAID program and operations assessment report No 10, Washington, D.C., U.S. Agency for International Development Churchill, C. (2002). Trying to understand the demand for micro-insurance, Journal of International Development, 14(10), 381-387 Cohen,M.(2002). Making microfinance more client-led. Journal of International Development, 14(12), 335-350 Daily Posts (2018).Central Bank of Nigeria. September 26 Eyiah, Alex K, (2001). An integrated approach to financing small contractors in developing countries: A conceptual model, Construction Management and Economics 19(9), 511- 518 Njoku, J.E & Obasi, P.C(2001).Loan repayment AGF-Agric credit guarantee scheme and its Determinants under the (ALGS) in Imo State, Nigeria. African Journal Review of Money Finance and Banking, 201 Nourse, H.(2001).The missing parts of microfinance: Services for consumption and insurance, SAIS Review 21(4), 61-70 Oshuntogun, A(2007).Extending agricultural credits through public institutions in Nigeria: A comprehensive study of the Ondo Agricultural Credit Corporation and Ogun State Agricultural Development Corporation UR - https://doi.org/10.18769/ijasos.550363 L1 - https://dergipark.org.tr/en/download/article-file/708184 ER -