Paper long abstract:

COVID-19 AND MICROFINANCE INSTITUTIONS IN NIGERIA.

BODUNDE C. OLAYEMI

Edo University Iyamho, Uzuaire, Edo State. Nigeria.

Department of Accounting

Email:olayemi.bod@gmail.com

Abstract

This study seeks to examine the impact of COVID-19 Pandemic on microfinance institutions in Nigeria. Microfinance institutions provide a wide range of financial services such as savings, loans, payment services, money transfers etc. (CBN, 2013). Its importance is that, it provides much needed financial services to the poor and low income households (Teeboon 2019).

Since microfinance loans are expected to be repaid by borrowers in order to sustain the lending capacity of Microfinance institutions, the study seeks to examine the following research questions: How did COVID-19 pandemic affects the ability of microfinance institutions to give out loans in Nigeria? How did COVID-19 pandemic affects the ability of borrowers to repay their loans in Nigeria? Lastly, what is the impact of COVID-19 pandemic on the financial status of microfinance institutions in Nigeria?.

The study employs multiple regression analysis given that the data are cross-sectional and time series in nature. Secondary data will be extracted from the annual financial reports of different microfinance institutions from the period of 2010-2020. While primary data will be collected through interviews with selected managers and customers of microfinance institutions.

The outcome of this study will reveal the effect of pandemic such as COVID-19 on the performance of microfinance institutions and how the negative effects can be prevented in the future.