Determinants of Loan Delinquency among Micro-Entrepreneurs in Delta State, Nigeria

Olomu, J. B; Akinbebije, D; Emerah, A. A.; David, J. O.; Ibikunle, B.; Enikankiselu, A M.

doi:10.70382/ajaias.v8i2.027

Authors

Olomu, J. B. (Ph.D) Department of Business Administration, Westland University, Iwo, Nigeria. Author
Akinbebije, D. (Ph.D) Department of Civil Environmental Engineering, City University, Cambodia. Author
Emerah, A. A. (PhD) Department of Business Administration, Michael and Cecilia Ibru University, Ughelli, Nigeria. Author
David, J. O. Department of Business Administration and Marketing, Babcock University, Ilishan, Nigeria. Author
Ibikunle, B. Department of Business Administration, Federal College of Education, Okene, Nigeria. Author
Enikankiselu, A M. Depatment of Business Administration, Ajayi Crowder University, Oyo, Nigeria Author

Abstract

This study examined the determinants of Loan Delinquency among Microfinance Borrowers in Nigeria. The objective of the study was to determine the factors that affect loan delinquency among micro-entrepreneurs in Delta State, Nigeria. Data were collected with the use of questionnaire which was distributed to 100 micro-entrepreneurs engaged in various businesses across Delta state. The responses were categorised as agree (3), neutral (2), and disagree (1). The responses were analysed descriptively using percentages, and inferentially with ordinary least square (OLS) regression. The findings showed that training, monitoring and marital status were significant variables that affected loan delinquency. It was therefore, recommended that lending institutions should regularly organise training programmes for potential borrowers on how best to utilise borrowed funds for optimum returns which guarantees timely repayment.