EFFECT OF MFIs GENDER DIVERSITY ON AGRICULTURAL LENDING TO WOMEN ENTREPRENEURS IN THE FEDERAL CAPITAL TERRITORY OF NIGERIA

Authors

  • M. B. Muazu International Centre of Excellence for Rural Finance and Entrepreneurship, Business School, Ahmadu Bello University, Zaria.
  • I. I. Tijjani Department of Business Administration Business School, Ahmadu Bello University, Zaria.
  • M. B. Saidu Department of Accounting Business School, Ahmadu Bello University, Zaria.

Keywords:

Board diversity, female farmers, Lending, Microfinance bank, Loan accessibility.

Abstract

Loan accessibility is very critical in promoting women empowerment and
supporting businesses owned and ran by women farmers. The paper examined the
effect of gender diversity on the agricultural lending rate to women entrepreneurs
by the microfinance banks in the federal capital territory, Abuja. The paper
collected data from the annual reports of 10 MFIs from2006 to 2020. This period
after 2006 recapitalization of MFIs was chosen because after the recapitalization
new banks were born while some banks failed after the process. The ten bank
selected have available data record needed for this research. Descriptive and
panel regression analysis were employed to establish the relationship between
Microfinance institutions gender diversity on agricultural lending to women
entrepreneurs in the federal capital territory of Nigeria. Using multiple
regression model as technique of data analysis, the study found gender diversity
has positive and significant effect on the lending rate to women by the
microfinance banks in the federal capital territory, Abuja. The paper therefore
recommends that policy makers should see to the increase in women participation
in the microfinance banks as the presence of women has been empirically found
to have positive and significant relationship with lending rate to women by the
microfinance banks in the federal capital territory.

Published

2023-12-28

Issue

Vol. 1 No. 1&2 (2023)

Section

Articles