While some Microfinance Banks (MFBs) in the country have been swept away by the economic downturn, there are others that are successfully catering to the needs of low-income earners.
The top five Microfinance Banks include LAPO MFB, AB, Baobab, Lovonus, and Addosser MFB. These banks have distinguished themselves by embracing technology in their products and services.
LAPO Microfinance Bank, originally established in response to the fall out of the implementation of the Structural Adjustment Program (SAP) in the late 1980s, is now a nationally recognized institution. It offers a wide range of financial solutions to micro, small, and medium enterprises, as well as low-income households across 34 states in Nigeria.
AB Microfinance Bank, licensed by the Central Bank of Nigeria, is committed to providing financial services to small and medium-scale enterprises and the lower-income strata. They offer stress-free loans with competitive interest rates and a maximum maturity of 18 months.
Lovonus Microfinance Bank, with a decade of experience, has become one of the most reputable banking brands in Nigeria. It serves a diverse customer base through various channels and maintains strong liquidity while digitizing its operations.
Baobab Microfinance Bank operates in eight African countries and one province in China, aiming to broaden access to finance for underserved businesses. They utilize innovative technology, such as their Baobab app, to facilitate seamless transactions and expand their branch networks.
Addosser Microfinance Bank, established in 2008, has evolved from a unit microfinance bank to a state microfinance bank. With over 137,000 clients, predominantly women, it offers a range of products and services through its branches in Lagos.
These Microfinance Banks have shown their commitment to leveraging technology and meeting the financial needs of various customer segments, despite the challenges faced by the industry during the economic downturn.