Date of Conferral

9-26-2025

Degree

Doctor of Business Administration (D.B.A.)

School

Management

Advisor

Pamm Kemp

Abstract

In May 2023, the Central Bank of Nigeria revoked the licenses of 179 microfinance banks due to insolvency and noncompliance with regulatory standards. Directors of microfinance institutions (MFIs) are concerned with financial instability because the collapse of MFIs undermines poverty alleviation efforts and local economic development. Grounded in agency theory, the purpose of this qualitative pragmatic inquiry project was to explore the strategies that managers within MFIs in Nigeria used to ensure financial sustainability. The participants were eight directors in the finance industry, including six from MFIs and two from the Central Bank, located in Delta State, Abuja, and Lagos, Nigeria. Data were collected using semistructured interviews and a review of public documents. Five themes were identified using thematic analysis: capital adequacy and asset management, loan strategies and ownership dilution, and risk management and compliance. A key recommendation is for finance industry directors to prioritize group lending models and client-centric innovations to drive sustainability. The implications for positive social change include the potential to improve financial access and literacy among Nigeria’s underserved populations, empower microentrepreneurs through sustainable financing, and strengthen community development by enhancing MFI operational practices.

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