ASSESSING THE COOPERATIVE ENTREPRENEURSHIP NEEDS OF MICROFINANCE BANK CREDIT OFFICERS IN LAGOS: IMPLICATIONS FOR RURAL FINANCIAL INTERMEDIATION

Abstract

Credit officers in Microfinance Banks (MFBs) play a crucial role in promoting financial inclusion
for marginalized rural populations, particularly in Nigeria, where traditional banking services are
often inaccessible. This study investigates the cooperative entrepreneurship competencies and
institutional support gaps among credit officers in eleven strategically chosen rural MFBs across
Lagos State’s diverse agricultural and commercial areas. Using purposive sampling, thirty-six
frontline credit officers were selected, representing institutions that mainly serve smallholder
farmers, petty traders, and rural women entrepreneurs. Primary data was collected through
validated structured questionnaires administered via face-to-face interviews, with analysis
conducted using descriptive statistical techniques such as frequency distributions, percentages, and
arithmetic means. Three specific research hypotheses related to competency levels, institutional
participation, and motivational factors were rigorously tested using Chi-square (χ²) statistical
analysis. The findings reveal a significant disconnect between competency and practice, as credit
officers exhibit a solid theoretical understanding of cooperative entrepreneurship frameworks but
are systematically excluded from critical policy design processes that influence loan product
development, risk assessment protocols, and client mentorship strategies. The investigation also
uncovers widespread motivational deficits due to inadequate remuneration, the lack of merit-based
incentives, and insufficient occupational insurance coverage, all of which undermine service delivery
quality and client relationship sustainability. To address these issues, the study recommends targeted
professional development interventions that include training on cooperative business models,
participatory policy formulation mechanisms, and comprehensive welfare enhancement packages.
These packages should encompass competitive compensation, performance-based rewards, and
robust health insurance to improve the effectiveness of rural financial service delivery.