Performance Assessment

Grooming Centre has achieved significant results since its inception in 2006. By optimizing the principles of best practice in microfinance and financial intermediation, the Centre is demonstrating the benefits of professionalism and sound management practices in growing microfinance institutions. Utilizing exclusively commercial funds and contributions of the founders, the Centre is breaking all conventional barriers to expanding financial services to the poor.

In September 2011, a team from MicroRate International USA visited Grooming Centre to conduct the second Social and Performance Rating. This rating measured the health of the organization based on internationally recognized parameters.



The MicroRate team also rated the Centre's social performance.

 ratingsocial  ratingstar


In 2015, a third rating exercise conducted by MicroRate showed that the Centre improved upon its previous performance. This achievement demonstrates that the Centre's commitment to the financial and social development of clients is the essence of its service. The reports can be downloaded from the links below:

Institutional Rating [PDF]         Social Rating [PDF]


Rating Rationale 

Grooming is a well run, operationally sound microfinance institution. However, taking deposits from borrowers withoutgraph supervision could become a serious risk for the clients, the institution and external providers. Strong methodology and highly standardized credit operations have resulted in significant growth of the loan portfolio while retaining high portfolio quality. However, the institution could benefit from a stronger head office with more specialized administration, and timely reporting. The Organization exhibits good internal controls, a high level of productivity and efficiency. It benefits from strong positioning in its market niche with a large potential market and few competitors. The institution is committed to its social mission and board members look to continually improve its performance. Lack of funding is jeopardizing the institution’s growth and future repayments of current debt are threatening liquidity. Grooming has so far met its pressing funding needs by mobilizing savings. Nigerian law allows unsupervised NGOs’ like Grooming to mobilize deposits from their “members”. But the institution is not adequately equipped for this and the practice exposes poor depositors to unacceptable risks. If Grooming could fund its growth from other sources or transform itself into a licensed institution its rating grade would improve significantly.


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