While the wind of economic downtown has swept away some Microfinance Banks (MFBs) in the country, there are others that are meeting the needs of the low-income earners.
The top five Microfinance Banks are LAPO MFB, AB, Baobab, Lovonus, Addosser MFB. These banks have distinguished themselves through the adoption of technology in their products and services.
LAPO Microfinance Bank:
LAPO Microfinance Bank is an off-shoot of the Lift Above Poverty (LAPO) Organisation, a poverty-focused non-governmental organisation. It was initiated in the late 1980s in response to the fall out of the implementation of the Structural Adjustment Program (SAP).
The organisation was incorporated in April 2007 and licensed to operate as a regulated State Microfinance Bank by the Central Bank of Nigeria (CBN) in 2010. It became a National Microfinance Bank in 2012.
LAPO Microfinance Bank is an institution that provides a range of financial products and solutions to assist micro, small and medium enterprises, and members of low-income households in 34 of the 36 states in Nigeria, including the Federal Capital Territory, Abuja and boasts of a broad network of over 500 branches.
“Enjoy the personalised service you need at LAPO Microfinance Bank, including long-term business financial planning and extended-hours access to our specialised business service team,” the bank said.
The bank offers loans to Small and Medium Enterprises (SMEs) online, where a customer can access up to N10 million credit facility with an extendable duration of 12 months.
AB Microfinance Bank:
AB Microfinance Bank Nigeria is a leading financial institution with a mission to provide a wide range of financial services to the small and medium scale enterprises as well as the lower income strata in Nigeria.
AB provides loans to individuals and SMEs that need it, at no stress, and competitive interest rates. It is licensed by the Central Bank of Nigeria and committed to improving financial accessibility all around the country.
“As an entrepreneur, you can easily access a quick loan in Nigeria through this AB Microfinance service. Loan value ranges from N15,000 to N3 Million and has a maximum maturity of 18 months,” the bank said.
AB microfinance also has other services like commercial banks, which makes accessing their services much easier.
Lovonus Microfinance Bank:
With a 10-year history, Lovonus is one of the leading and most recognised banking brands in Nigeria. Lovonus Microfinance Bank has growing operations all over Lagos.
Lovonus Microfinance Bank has a large footprint across the banking industry over the years. The bank is one of the largest financial services in the banking industry. It provides corporate, commercial, SME, consumer and personal (retail) banking services to the Nigerian customer, served through diverse channels.
“We have proven expertise and capacity in key sectors of economies across Nigeria including oil and gas, infrastructure finance, agric and commodity/export,” said the bank on its website.
The bank maintains a total account of 10,000, operates online real time, digitises its operations and maintains strong liquidity.
Baobab Microfinance Bank:
Baobab Microfinance Bank is a financial services group with operations in eight countries on the African continent and one province of China. Via its subsidiaries, Baobab provides financial services to half a million small businesses, fulfilling its mission of broadening access to finance among those underserved by traditional banks.
The bank serves 280,000 customers, disbursed N15 billion, and N6 billion savings as stated on its website.
“Already we have the Baobab app which is doing a lot of wonders in the market enabling customers to do transactions seamlessly without actually coming to the bank. We also partner with some agency bank networks to render services to those in remote areas and this is going to continue in the years ahead, we are also opening more branch networks in Port-Harcourt, Aba, and Onitsha,” Kazeem Olarenwaju, former managing director and CEO of Baobab Nigeria, said last year.
This expansion has led us to disburse over N5 billion monthly to over 5000 customers in terms of credits. Our goal is to become the No 1 Microfinance Bank in Nigeria and Africa for the MSME sector and that is why we are constantly building our capacity, technology, and products.”
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Addosser Microfinance:
Founded in 2008, Addosser Microfinance Bank Limited is one of the leading Microfinance banks in Nigeria. Through its team of more than 300 employees, Addosser offers a broad range of products and services, to serve its over 137,000 customers through three business groups: Retail and Microenterprise Banking, SME Banking, and Specialised products & Investments.
The bank’s operating licence was upgraded from a unit microfinance bank to a state microfinance bank in 2013. With operations that currently spans across 21 branches in Lagos, the bank serves a customer base in excess of 137,000 clients with women accounting for over 70 percent of this number. The bank’s asset size is currently in excess of N16 billion with shareholder funds above N2.5 billion.
