DOI: 10.36347/sjebm.2016.v03i05.008

Pages: 287-295

Poverty, unemployment which causes rural – urban migration and many other social problems has been witnessed in Nigeria in many ways. Yet the rural unemployed and uneducated farmers are blessed with ideas and are ready to work. This has made them over time to develop ways of helping themselves financial through cooperatives. The government of Nigeria over time have identified this ability and tried helping them with some schemes for empowerment which failed. As a reaction to that failure, the Microfinance banks were institutionalized to help the rural entrepreneurs in accessing micro-credit facilities easier than it could have been with commercial banks. Yet there is the issue of some firms who applied for the microfinance license but not qualified, and those who got the license but folded in a little while. This raises the fear of a failure of this policy like others before it. Therefore, this study on managerial effectiveness and corporate performance, seek to investigate the managerial structure and skills of the microfinance banks, effects of corporate governance on corporate performance and the performance of microfinance banks in Nigeria so far. It was discovered that the most of the microfinance banks in Nigeria do not follow the CBN regulations on managerial appointment as some of them don’t even have graduate staff. Many of them was discovered to perform below expectation as some of them borrowed and spent more on operation cost than they earn. The study therefore, concluded that from research reports empirically analyzed, it is agreed that microfinance institutions have come to stay and is a veritable tool in the development of Nigeria. Yet it cannot achieve as it ought to except its managerial challenges are confronted.