ABSTRACT

The study analyzed Problems and Prospects of Michael Okpara University of Agriculture, Umudike Microfinance Bank in Nigeria. The study ascertains the challenges faced by MOUA U Microfinance 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 used for 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 of questionnaires to staff of Michael Okpara Microfinance Bank, Umudike, Abia State. A test-re-test were conducted to ensure validity and re11abi1ity of the data. The data were presented using 5 point Liker scale and tested using correlation coefficient model (SPSS). The descriptive result revealed that most of the respondents strongly agreed that inadequate finance, 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 technical skill are the challenges affecting the performance of Michael 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 funds from foreign donors. This will go a long way, to reduce the problem adequate finance, high risk, heavy transportation cost, mounting loan losses, low capacity and technical skill and high rate of interests charged to customers.