An Evaluation of Investment in Human Capital Development on the Performance of Microfinance Banks (Mfb) In Nigeria
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IBIMA Publishing
Abstract
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In view of collapse of the Nigeria educational system, weak leadership and negative cultural
values and mass illiteracy levels; more specifically inadequate skilled human capital within the
financial services industry and poor infrastructure, this study aims at evaluating investment in
human capital development costs (wages, training cost and other costs) on the performance of
microfinance banks in Nigeria. Investment by firms in human resources by acquisition and
training will lead to anticipating a future generation of profits and services that will be produced
by these assets. The study adopted a purposive sample and Sixteen (16) Micro finance banks out
of the thirty four (34) existing in Ogun state was investigated. Random sampling technique was
used to select respondents in each Micro Finance Banks cutting across directors, employees and
shareholders of the Micro Finance Banks. A total of 320 collected questionnaires were used for
data analysis. The data were analyzed using appropriate (parametric and non-parametric
techniques) descriptive and inferential statistical techniques. A total of 313 of the sample
representing (98.4% of the sample) agreed that the efficiency and effectiveness of management
is a major determinant of the performance of Micro Finance Banks in Nigeria. The study also
finds that human capital development has positive impact on overall performance of
Microfinance banks. The study recommends that training and retraining of employees should be
given top priority for the sustainability micro finance banks in Nigeria.
Keywords
H Social Sciences (General), HG Finance