In view of collapse of the Nigeria educational system, weak leadership and negative cultural\nvalues and mass illiteracy levels; more specifically inadequate skilled human capital within the\nfinancial services industry and poor infrastructure, this study aims at evaluating investment in\nhuman capital development costs (wages, training cost and other costs) on the performance of\nmicrofinance banks in Nigeria. Investment by firms in human resources by acquisition and\ntraining will lead to anticipating a future generation of profits and services that will be produced\nby these assets. The study adopted a purposive sample and Sixteen (16) Micro finance banks out\nof the thirty four (34) existing in Ogun state was investigated. Random sampling technique was\nused to select respondents in each Micro Finance Banks cutting across directors, employees and\nshareholders of the Micro Finance Banks. A total of 320 collected questionnaires were used for\ndata analysis. The data were analyzed using appropriate (parametric and non-parametric\ntechniques) descriptive and inferential statistical techniques. A total of 313 of the sample\nrepresenting (98.4% of the sample) agreed that the efficiency and effectiveness of management\nis a major determinant of the performance of Micro Finance Banks in Nigeria. The study also\nfinds that human capital development has positive impact on overall performance of\nMicrofinance banks. The study recommends that training and retraining of employees should be\ngiven top priority for the sustainability micro finance banks in Nigeria.
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