Financial Inclusion and Organizational Performance: Evidence from Micro-Finance Banks in Lagos State.

Abstract:

Micro-finance banks play sound contribution to economic growth and development as well as enhanced employment creation. The study aimed to determine the effects of financial inclusion measures: savings, affordable credits and financial advice on micro-finance banks performance measures (financial and operational) in Lagos state, Nigeria. Survey research design was adopted and the use of multi-regression method of analysis was employed to analyse the generated data. The sample size was 386 and sampling technique adopted was convenience method. The field data generated were normalized, valid and reliable for this study. Findings revealed that financial inclusion measures like savings, affordable credits and financial advice significantly enhance both financial and operational performances of micro-finance in Lagos state with F-statistics (2, 343) = 120.241, p = 0.001 (p<0.05) and F-statistics (2, 343) = 211.814, p = 0.003 (p<0.05) respectively. The study concluded that financial inclusion measures like savings, affordable credits and financial advice improve micro-finance banks performance via financial and operational in Lagos state, Nigeria. Thus, the study recommended that micro-finance banks policy makers, management should embrace financial inclusion measures such as savings, affordable credits and financial advice in order to enhance financial and operational of micro-finance performance in Lagos state.