Impact of Credit Risk Management on the Financial Performance of Microfinance Institutions in Nigeria: A Qualitative Review

This study reviewed the effect of credit risk management on financial performance microfinance institutions (MFIs) in Nigeria. Utilizing a qualitative review methodology, found that proactive assessment, thorough appraisal, proper loan monitoring, and prompt recovery procedures are essential components efficient management, which has substantial impact MFI performance. Credit is also improved by well-defined regulations, qualified personnel, suitable technology infrastructure. The cites difficulties MFIs confront, including restricted access to information, insufficient regulatory frameworks, operational limitations. By addressing these issues, sustainability can be increased. Enhancing information sharing systems, encouraging stakeholder cooperation, offering capacity-building initiatives some recommendations. offers insightful help practitioners, regulators, policymakers create climate supports while boosting promoting Nigeria’s long-term growth.