Abstract
The Microfinance system in Nigeria and many sub-Sahara countries has suffered serious setback due to poor loan repayment. This study attempt at assessing the loan-repayment performance of Lift Above Poverty Organization (LAPO). LAPO in Nigeria was chosen to be investigated because of its profile of attaining one million borrowers and disbursement of one billion dollars in micro-credits to smallholders. Secondary data on LAPO micro-credits from different sources from 1990 to 2014 were analyzed using Simple descriptive statistics such as percentages, mean, t-tests and regression techniques. The results of the analyses showed at 0.92 repayment rate and 0.08 default rate, LAPO enjoys high level of repayment and a low default rate. As further shown by the results, this is spurred by the borrower experience, positive effects of the volume of loans borrowed, number of borrowers, number of credit agency staff, and volume of loans repaid. Incentive-driven system and further administrative re-engineering towards enhancing repayment performance is recommended.
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