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Microfinance Mission Drift In Nigeria

Author

Listed:
  • Olusegun Toyin Segun

    (Research Department, Central Bank of Nigeria, Abuja.)

Abstract

Using panel data methodology, the study employs dataset of 752 microfinance banks (MFBs) during the period 2011 to 2014, to test for the existence of mission drift in Nigeria. The result suggests that sustainable microfinance banks tend to be more focused on poor clients, which implies increased depth of outreach of microfinance banks in Nigeria. This result allays fear that clients who are better off could crowd out poorer customers in a sustainable microfinance scheme. In view of this finding, the study concludes that sustainability and outreach are not necessarily incompatible.

Suggested Citation

  • Olusegun Toyin Segun, 2017. "Microfinance Mission Drift In Nigeria," West African Journal of Monetary and Economic Integration, West African Monetary Institute, vol. 17(1), pages 86-98, June.
  • Handle: RePEc:wam:journl:v:17:y:2017:i:1:p:86-98
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    More about this item

    Keywords

    Mission Drift; Microfinance; Panel data.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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