Davodani MfB records N10bn balance sheet size in 10 years

Davodani Microfinance Bank said it successfully achieved a balance sheet size of N10 billion within its first 10 years of operations, marking a major milestone in its commitment to empowering small businesses and individuals across the country.

Austin Enajemo-Isire, chairman of the bank, disclosed this during the bank’s 10th anniversary celebration in Lagos, noting that what began as a struggling institution has evolved into a symbol of stability and progress.

“From the initial deficit shareholders’ fund of N5.4 million of the acquired unit MFB, we now stand strong with a balance sheet size of about N10 billion, and shareholders’ fund exceeding N3 billion,” Enajemo-Isire said.

He stressed that this achievement is not merely about financial figures but reflects the profound impact the bank has made in improving lives, supporting small businesses, and earning the trust of stakeholders.

Reflecting on the bank’s humble beginnings, Enajemo-Isire explained how Davodani Microfinance Bank, also known as DDMFB, came to life through a shared vision in 2014. “The journey of DDMFB began in 2014 through a bold vision, led by my humble self and my trusted friends who saw immense potential to invest in microfinance banking business. As a first step at the time, we acquired an existing unit MFB license established in 2008,” he recalled.

At the time of acquisition, the bank was weighed down by significant losses and negative capital, which required urgent intervention. “The acquired bank’s shareholders’ fund was then eroded by losses and was under the weight of negative impaired capital.

The first crucial step was an injection of N20 million required to recapitalise the ailing unit MFB, and we immediately followed up with an additional investment which raised the capital base to sufficiently apply for conversion to a state operating license status,” he narrated.

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With approval from the Central Bank of Nigeria (CBN), DDMFB transitioned into a state-licensed microfinance bank and began to build its operations on a foundation defined by integrity, high ethical standards, reliability, and excellence.

Enajemo-Isire expressed satisfaction over the bank’s transformation, pointing out how the once small bank operating from a single branch has expanded significantly. “As we reflect on the journey, we can take pride in the fact that DDMFB now boasts of 11 branches from its one-branch status at the time of acquisition and a team of about 200 passionate and committed employees,” he said.

The chairman also highlighted the numerous recognitions the bank has received in recent years as proof of its growing influence and service excellence. “Over these years, DDMFB has been honored with many accolades, awards, and recognitions.

Last year alone, we received awards from BUSINESSDAY Newspapers during their annual program titled BAanks & Other Financial Institutions (BAFI) Awards 2024 as The best Microfinance Bank in Growth and Strategic Expansion of the Year; Kosofe Chambers of Commerce & Industry award as Innovative MFB Award of the year,” he said.

Looking ahead, the chairman emphasised that the bank is prepared to tackle future challenges with the same resilience and innovation that have defined its growth so far. “As we celebrate, we are also looking to the future with excitement and determination.

During the anniversary celebration, John Ologe, managing director and chief executive officer of Davodani Microfinance Bank, reflected on the broader contributions of microfinance banks (MFBs) to the Nigerian economy and affirmed DDMFB’s leading role. “MFBs serve as financial intermediaries by mobilising savings, granting loans, facilitating resource allocation, managing and diversifying risk, thereby stimulating growth. DDMFB, no doubt, has been playing these roles effectively and efficiently over the past 10 years by touching lives and growing businesses,” Ologe said.

He provided data to illustrate the impressive performance of the microfinance sub-sector as of December 2024, stating, “The number of MFBs so far as of that date was 813, nine of them were national MFBs, 104 state MFBs, 284 tier 1 MFBs, and 416 tier 2 MFBs. The total assets today as at that date, December 2024, is N3.16 trillion, total loans N1.17 trillion, deposits N2.21 trillion, shareholders’ funds N250.84 billion, and of course, the number of depositors that are being serviced by MFBs has grown to 61.3 million and number of new customers about 76.4 million.”