Lovonus Microfinance Bank, a Micro, Small and Medium Enterprises (MSMEs) lender in the country, said it is targeting a loan disbursement of N1.5 billion to 11,500 customers at the end of the year.
This target represents a 7.14 percent increase from the N1.4 billion disbursed during the same period in 2023.
The bank has seen significant growth in its customer base, reporting an 11 percent increase to 10,584 customers in H1’2024, compared to 9,536 customers in H1’2023. This expansion is part of the bank’s broader strategy to deepen its reach and support within the MSME sector.
Speaking in an interview with BusinessDay in Lagos, Simeon Oni, managing director of Lovonus Microfinance Bank, detailed the bank’s plans for the remainder of the year. “We plan to unveil more features on our digital channels, particularly as we enter the ember period, which is our peak season based on historical trends. We will also leverage increased personnel to meet our targets,” Oni said.
Oni further outlined the bank’s projection to close the year with N1.5 billion in loan disbursements while expanding its client base to 11,500. This growth is set against the backdrop of a challenging economic environment, exacerbated by recent hikes in the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN).
In July 2024, the CBN raised the MPR by 50 basis points to 26.75 percent from 26.25 percent, following a two-day Monetary Policy Committee (MPC) meeting in Abuja. This hike has put additional pressure on financial institutions, including Lovonus Microfinance Bank, to adjust their rates to remain competitive while ensuring the sustainability of their operations.
“People tend to rush for new rates whenever the MPR is increased, but we must carefully manage our competitive advantage to ensure our clients remain in business,” Oni explained.
Oni also reiterated Lovonus Microfinance Bank’s dedication to regulatory compliance and fostering strong customer relationships. “Our mission is to enrich lives, and we do so through innovation and teamwork,” he added.
Lovonus Microfinance Bank’s focus on sustainable growth and customer support aligns with its ethos of enriching lives, even as it navigates the complexities of the current economic landscape.
“I have been a customer of Lovonus Microfinance Bank since 2018. Their deposits are safe, their investments yield good interest rates which are paid timely and their little interest on loans have helped my business grow despite the tough state of the nation’s economy,” a customer said, anonymously.
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