Risk management in microfinance : identities, perceptions, behaviours and interests of microfinance stakeholders in Plateau State, Nigeria

Danaan, V

Abstract

Studies on microfinance risk management in Nigeria are inclined to quantitative analysis of risk based on business and accounting principles without recourse to understanding and interpreting meanings from the lived experiences of relevant stakeholders. This thesis is an in-depth study of the contexts (economic, political, social and cultural) in which stakeholders interpret and manage risks based on a case study of two microfinance institutions (MFIs)-a microfinance bank (MFB) and a non-bank MFI (NMFI) in Plateau State, Nigeria. It is predicated on the understanding that risks are subjective and interpreted by stakeholders- board members, investors, staff, clients and community leaders as distinct entities. It aligns with the interpretivist philosophy in examining how meanings are created from experiences which are embedded in the contexts in which stakeholders engage with MFIs. Drawing on the Social Theories of Risk and Stakeholder Theory, this study adopts a qualitative approach and case study research design using data obtained from document reviews, observation, 33 individual interviews and 3 focus group discussions with purposefully selected stakeholders. Thematic analysis was facilitated using NVivo, a Computer-Aided Qualitative Data Analysis Software (CAQDAS), to generate and discuss themes based on participants’ perspectives. Its major findings show that risks are conceptualized in terms of unforeseen eventualities underpinned by social complexities in MFIs’ lending to micro clients which make their sustainability and outreach problematic. Major sources of risks for MFIs in the state addressed in this thesis include; low repayment rates, diversion or misuse of loans by clients, low level of knowledge and skills by practitioners, competition with commercial banks, inadequate support by the government, poor customer relationship management, low adoption of financial technology, influence of patriarchy, political interferences, recurring ethno-religious conflicts, poor orientation and awareness of the social mission of microfinance. Furthermore, the study found that risk management in the MFIs studied is hampered by their ownership structures and operating methodologies. The originality and contribution to knowledge of this thesis lie in developing a framework for subjective risk management in microfinance embedded in the identities, perceptions, behaviours and interests of stakeholders within the context of the study.

Citation

Danaan, V. (in press). Risk management in microfinance : identities, perceptions, behaviours and interests of microfinance stakeholders in Plateau State, Nigeria. (Thesis). University of Salford

• Thesis Type: Thesis
• Acceptance Date: Mar 29, 2019
• Deposit Date: Apr 9, 2019
• Publicly Available Date: Apr 9, 2019
• Award Date: Mar 23, 2019