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Original Research

THE DIFFERENCES IN THE INFLUENCE OF MICROFINANCE BANK'S SOCIAL AND FINANCIAL INTERMEDIATION ACTIVITIES ON THE PERFORMANCE OF SMALL-SCALE FOOD MANUFACTURING BUSINESSES IN LAGOS AND OYO STATES, NIGERIA

ALABI F. A. 1, OJOKUKU R. M. 2, and Dr. LAOSEBIKAN J. O. 3.

Vol 17, No 10 ( 2022 )   |  DOI: 10.5281/zenodo.7185283   |   Author Affiliation: Bowen University, Iwo, Nigeria 1,3; Lautech, Ogbomoso, Nigeria 2.   |   Licensing: CC 4.0   |   Pg no: 347-362   |   To cite: ALABI F. A., et al., (2022). THE DIFFERENCES IN THE INFLUENCE OF MICROFINANCE BANK'S SOCIAL AND FINANCIAL INTERMEDIATION ACTIVITIES ON THE PERFORMANCE OF SMALL-SCALE FOOD MANUFACTURING BUSINESSES IN LAGOS AND OYO STATES, NIGERIA. 17(10), 347–362. https://doi.org/10.5281/zenodo.7185283   |   Published on: 11-10-2022

Abstract

This study investigated micro-finance banks' social and financial intermediation activities on the performance of small-scale food manufacturing businesses in Nigeria. It aims to analyze the differences in the influence of microfinance banks' social and financial intermediation activities on the performance of small-scale food manufacturing businesses in Lagos and Oyo states, Nigeria. The study adopted a correlation descriptive survey design. A purposive sampling method was employed in the selection of seven hundred and forty-seven (747) small-scale food manufacturing businesses within Lagos and Oyo States, Nigeria. Findings show that there is no significant relative difference in the effect of Microfinance Bank's social and financial intermediation activities on the performance of small-scale food manufacturing businesses in Lagos and Oyo States, Nigeria. This study reveals that Microfinance banks' intermediations activities have a relative effect on their performances. Microfinance Banks' social intermediation has higher relative effects on the Performance of the small-scale food manufacturing sector compared to Microfinance Banks' financial intermediation in the food manufacturing sector. The study recommends that federal government agencies, microfinance banks, and non-governmental organizations should initiate regular intermediations functions through managerial skills development, credit access, loans, saving schemes, seminars, and workshops to improve the small-scale food manufacturing businesses' performance in Lagos and Oyo States, Nigeria.


Keywords

Microfinance banks (MFBs), Microfinance Institutions (MFIs), Small and Medium Enterprises (SME) Social Intermediation, Financial Intermediation, Small-scale businesses, Small-scale business Performance, Credit Policies, Financial Services, and Social Services.