The African Development Bank Group (AfDB) and LAPO Microfinance Bank signed a loan agreement of N2.3 bn (approximately US $12 million) to support inclusive growth in Nigeria and also support Small and Medium Enterprises (SMEs) in the country.
LAPO MfB is the leading and the largest microfinance bank in Nigeria with over 1.8 million clients and 386 branches currently operating in 28 out of 36 states in the country. Given its history of a group-lending model based on a community-based approach, LAPO MfB predominantly focuses on low-income households and women with females comprising over 90% of its total client base.
The loan will be used to support a proposed expansion project of LAPO MfB to achieve its corporate goal to serve 5 million clients by 2017, focusing on low-income individuals and SMEs by providing affordable access to finance, savings, credit and insurance in urban and rural areas as well as by expanding its geographic coverage and number of branches.
LAPO MfB, committed to reaching more low-income households in Nigeria, this year emerged the overall winner of the coveted BusinessDay Newspaper ‘Microfinance Bank of the Year’ award, based on the level of spread of branches, bank network, size of loan portfolio and number of depositors.