ABSTRACT

The study analyzed Problems and Prospects of Michael Okpara University of Agriculture, Umudike Microfinance Bank in Nigeria. The study ascertains the challengesfaced by MOUAU Micfofinance bank and determine its prospect in Nigeria. The study adopted survey research design and simple random sampling technique were also adopted. A population of 30 staff of Michael Okpara Microfinance Bank, Umudike, Abia State was usedfor the study. However, 25 questionnaires were recouped form the respondents which form the sample size of the study. Primary data was sourced through the distribution ofquestionnaires to staffofMichael Okpara Microfinance Bank, Umudike, Abia State. A test-re-test were conducted to ensure validity and reliability of the data. The data were presented using 5 point Likert scale and tested using correlation coefficient model (SPSS). The descriptive result revealed that most of the respondents strongly agreed that inadequatefinance, high risk, heavy transaction cost, mounting loan losses, low capacity and low technical skill are the challenges facing Michael Okpara Microfinance Bank, Umudike, Abia State. The empirical result revealed that inadequate finance, high risk, heavy transaction cost, mounting loan losses, low capacity and low technicalskill are the challenges affecting the performance ofMichael Okpara Microfinance Bank, Umudike, Abia State. The study recommended that Insurance policies should be introduced into microfinance bank operations to protect the banks against loan defaulters, the government and operators of the banks should also fundsfromforeign donors. This will go a long way to reduce the problem of inadequate finance, high risk, heavy transportation cost, mounting loan losses, low capacity and technicalskill and high rate ofinterests charged to customers. ' d