Al-Hikmah University Journal

This study examined the effects of Microfinance Bank lending services on the development of youth entrepreneurs in Kaduna State of Nigeria. Multi – Stage random sampling technique was used to select respondents from 20 microfinance banks with over 200 youth entrepreneurs as customers. The data was analyzed using both descriptive statistics as well as Foster Greer and Thorbeck(FGT) Model. The findings indicate that average loans to youth entrepreneurs amounted to N586,878.76, while loans and advances to pooled customers was N406,764.38. This signifies that youth entrepreneurs who are customers of microfinance banks had easier access to loans than their counterparts who are not microfinance bank customers. In addition, results of this study indicate that the annual income of 29.60% of all youth entrepreneurs fall short of N406,764.38 whereas only 18.25% of those that are customers of microfinance banks recorded an annual income of less than N586,878.76. The loan repayment default rate against the youth entrepreneurs was only about 5% percent. The study concludes that Microfinance Banks have significantly contributed to the development of youths entrepreneurs in Nigeria. It was therefore recommended that Government should come up with policies that will enhance effective credit delivery services to young entrepreneurs by the Microfinance Banks