Thesis (MDF)--Stellenbosch University, 2012. / The study was carried out to find out the effect of credit risk and portfolio loan management on profitability of microfinance Banks (MFBs) in Lagos, Nigeria. To achieve the objective of the study, an econometric model was developed. A sample size of 14 microfinance banks was randomly selected, comprising four national, five state and five unit microfinance banks respectively. Five year annual financial statements of these 14 selected microfinance banks were obtained for this analysis using panel data that produce 70 observations for the period 2006 to 2010 The result reveals that the current value of all independent variables follow an expected relationship with the profitability of microfinance banks. That is, the net interest margin, asset mix proxied by ratio of loan to total asset, and ratio of equity to total assets have a positive relationship with the profitability of microfinance banks (MFBs) in Lagos state, Nigeria. Asset quality (ratio of non-performing loan to total loan) and the interest earnings to total assets ratio have a negative relationship with profitability of microfinance banks. However, the result reveals that of the five immediate past value of these independent variables, only net interest margin and interest earnings to total assets ratio maintained expected relationship with the performance (profitability) of microfinance banks. From the hypothesis test, it was found that credit risk management has a significant effect on the profitability of microfinance banks in Lagos state, Nigeria The study is set against the background and realisation that many MFBs in Lagos seem to continue to seek growth and profit without much attention to addressing credit risk issues – a necessity for their survival on a sustainable basis. The results indicated that the credit evaluation process was positively and significantly related to the quality of the loan portfolio in MFBs. The study also found out that internal rather than external to the MFB’s are more likely to provide the main explanation for MFBs’ profitability. To enhance their profitability, loan products which seem to have various defects which make loans even more risky need to be reviewed. The defects include: long loan processing procedures, absence of training to clients on proper utilisation of loans, lack of mechanisms to assess the suitability and viability of the business proposal for which loans were applied, inappropriate mechanism for assessing character for loan applicants, absence of moratorium periods between taking of a loan and repayment of a first instalment as clients were requested to repay their first instalment within the first month. The study recommended that MFBs should have a broad outlook in its credit risk and portfolio management strategy and this calls for radical reforms within the MFB’s operations and policies as well as more aggressive approaches most especially before availing credit and in its loan recovery as it had a direct impact on profitability.

Thesis (MDF)--Stellenbosch University, 2013. / This study examines the default rate and performance of Microfinance bank (MFBs) loans to Small and Medium Enterprises (SMEs) in Nigeria based on the case study of Accion Microfinance Bank Limited (AMFB), Lagos State. Responses from 150 employees of AMFB revealed that the causes of default rate and performance of SMEs reflect the risk and vulnerability of the SME sector in Nigeria. It further showed that MFBs apply stringent credit criteria in granting loans to SME borrowers, coupled with the existing high cost of funds. The attitude, lack of transparency on the part of SME owners and fund diversion were identified as major factors responsible for the high default rate among SME borrowers. These and other factors warrant the need for further study in the areas of the impact of MFB loans on SME development given the new revised microfinance policy framework in Nigeria.

In a traditional business environment, companies set up their organisation’s IT data infrastructure, install their applications and carry out the maintenance and management of their infrastructures. Whereas Cloud computing removes the need for companies to set up own data centers and run enterprise applications. Cloud computing technology provides businesses with the advantage of on-demand access, agility, scalability, flexibility and reduced cost of computing. An appreciable increase is being observed in the acceptance and migration to this new IT model in developing economies. In Nigeria, it has been observed that there is a somewhat unimpressive rate of adoption of Cloud computing by the microfinance operators. This research investigates the reason for the slow adoption of Cloud computing by SMEs in Nigeria with special consideration to the Microfinance subsector and to develop a model for improving the adoption of cloud computing by microfinance organisations. The research was conducted using a qualitative research design method. Interview was the main data collection instrument and data collected was analysed using thematic content analysis method. The analysis of the study revealed that SMEs in Nigeria, with particular reference to microfinance subsector in Akwa Ibom State are yet fully to embrace cloud technology. It was discovered that most of the SMEs studied, has some level of reservation about cloud computing arising from not having appropriate education and enlightenment about the cloud economic offerings and potentials. From the outcome of the research, the researcher identified that most people’s concerns are as a result of lack of knowledge about cloud computing and so the researcher concluded that appropriate enlightenment by industry stakeholders, cloud service providers, cloud enthusiasts and even the government on the risks and overwhelming economic incentives of cloud computing as well as the provision of a monitored free trial services will encourage the adoption of cloud computing by SMEs. / College of Engineering, Science and Technology / M.Tech. (Information Technology)

In a traditional business environment, companies set up their organisation’s IT data infrastructure, install their applications and carry out the maintenance and management of their infrastructures. Whereas Cloud computing removes the need for companies to set up own data centers and run enterprise applications. Cloud computing technology provides businesses with the advantage of on-demand access, agility, scalability, flexibility and reduced cost of computing. An appreciable increase is being observed in the acceptance and migration to this new IT model in developing economies. In Nigeria, it has been observed that there is a somewhat unimpressive rate of adoption of Cloud computing by the microfinance operators. This research investigates the reason for the slow adoption of Cloud computing by SMEs in Nigeria with special consideration to the Microfinance subsector and to develop a model for improving the adoption of cloud computing by microfinance organisations. The research was conducted using a qualitative research design method. Interview was the main data collection instrument and data collected was analysed using thematic content analysis method. The analysis of the study revealed that SMEs in Nigeria, with particular reference to microfinance subsector in Akwa Ibom State are yet fully to embrace cloud technology. It was discovered that most of the SMEs studied, has some level of reservation about cloud computing arising from not having appropriate education and enlightenment about the cloud economic offerings and potentials. From the outcome of the research, the researcher identified that most people’s concerns are as a result of lack of knowledge about cloud computing and so the researcher concluded that appropriate enlightenment by industry stakeholders, cloud service providers, cloud enthusiasts and even the government on the risks and overwhelming economic incentives of cloud computing as well as the provision of a monitored free trial services will encourage the adoption of cloud computing by SMEs. / College of Engineering, Science and Technology / M.Tech. (Information Technology)