Nigerias Leading SME-friendly Microfinance

Banks
While Nigerian Microfinance banks have distinguished themselves as
the engine room of the Nigerian SME sector, some Microfinance banks
are raising the bar by putting their customers needs at the fore of
their business drive.
Below is the list of leading SME-friendly microfinance banks in Nigeria
as compiled by TheBusinessDispatch editors. Factors like ease of
accessing fund, share capital base, probability of getting funding, low
interest rates, spread, electronic banking service were used to compile
this rare list. This list will be closely monitored and updated by TBD
from time to time as the microfinance bank industry evolves.
1. AB Microfinance Bank:

ABN is a socially responsible bank and

the bank of choice for micro and small enterprises. It strives to be the
leading provider of financial services in this market segment in Nigeria.
The Banks loans are primarily based on an assessment of the
borrowers repayment capacity. Business loans are the core product of
the Bank.
ABN builds-up long term business relationships with customers based
on responsibility and mutual respect. By doing so it promotes a savings
culture and supports borrowers to build-up a credit history.
ABN shareholders have a long term investment horizon and expect a
reasonable commercial return on investment
Website: www.ab-mfbnigeria.com
Head Office: 28, Akintoye Shogunle Street (Opposite No 2 John Olugbo
Street), Ikeja, Lagos.

Nigerias SME have a lot to benefit from micro-financing options

2. LAPO Microfinance Bank:

When in 2010, LAPO MfB obtained the approval

of the Central Bank of Nigeria (CBN) to operate as a state microfinance
bank, little people gave it any chance of becoming what we know it to
be today. In 2012, LAPO got an approval as a national microfinance
bank and over the years, LAPO MfB has emerged as a leading
institution delivering a range of financial services to over a million
people in Nigeria.
After disbursing N113.70b loans to Nigerian SMEs in 2015, LAPO has
distinguished itself as a clear leader in the microfinance sector of
Nigerians finance industry.

Despite the harsh operating environment obtainable in Nigeria, LAPO

Micro finance Bank posted a Profit After Tax (PAT) of N3.29 billion in its
2015 operations, against N2.80 billion achieved in the corresponding
period in 2014.Thats an impressive 17% growth.
ABN is a socially responsible bank and the bank of choice for micro and
small enterprises. It strives to be the leading provider of financial
services in this market segment in Nigeria.
The Banks loans are primarily based on an assessment of the
borrowers repayment capacity. Business loans are the core product of
the Bank.
ABN builds-up long term business relationships with customers based
on responsibility and mutual respect. By doing so it promotes a savings
culture and supports borrowers to build-up a credit history.
READ MORE: How to Build an Email Marketing Contact list

Website: www.lapo-nigeria.org
Head office: LAPO Head office: 18, Dawson Road, P.M.B. 1729, Benin
City, Edo State, Nigeria West Africa.
3. Accion Microfinance Bank:

Established in 2006, Accion

Microfinance Bank prides itself as economically empowering microentrepreneurs and low income earners by providing financial services
in a sustainable, ethical and profitable manner.
The bank made a profit after tax of N545.9M at the end of 2015
representing a drop of -12.3% compared to 2014. However,
shareholders funds grew to N3bn in 2015 from N2.6bn in 2014
representing a growth of 16.9%.

Compared to December 2014, the banks total loan portfolio grew by

28.1% from N4.2bn in December 2014 to N5.4bn in December 2015.
Total loans disbursed grew by 33.3% from 10.3bn in 2014 to N13.7bn in
2014. This earned the bank the Most Consistent Microfinance Bank of
2015 award from Ikeja City Awards.
e-banking: Partially Yes
Lending Rates: Between 4% & 6% monthly
Website: www.accionmfb.com
Head office: Accion Microfinance Bank Ltd. 4th Floor, Elizade Plaza,
322 Ikorodu Road, Anthony, Lagos
4. JAIZ Bank

Running with a vision to be the dominant noninterest financial service provider in sub-sahara Africa, Jaiz Bank is
proud to be the first and only full-fledged non-interest (Islamic) bank in
Nigeria. It is an unquoted Public Company owned by over 20,000
shareholders including the Islamic Development Bank (IDB).
Jaiz Bank Plc. obtained a regional operating license to operate as a
non-interest bank from the Central Bank of Nigeria on the 11th of
November, 2011 and began full operations as the first non-interest
bank in Nigeria on the 6th of January, 2012 with 3 branches located in
Abuja FCT, Kaduna and Kano. The regional license allows the bank to
operate geographically in a third of the country.
Jaiz bank recently obtained an approval from the Central Bank of
Nigeria (CBN) for a national operating license. This will enable it to
operate in all parts of the Federation. The Banks ultimate objective is
to expand beyond the shores of Nigeria in line with its vision.
The bank is not in any way bias towards non-muslims as both muslim
and non-muslim micor-entrepreneurs can benefit from its non-interest
loan facilities.
Head office: No. 73 Ralph Shodeinde Street Central Business District.
P.M.B. 31 Garki Abuja, Nigeria
Website: www.jaizbankplc.com
e-banking: At infancy

5. Fortis MFB

Fortis is the only microfinance bank in West

Africa with a Mobile Payment license granted by Central Bank of
Nigeria. It was licensed by the Central Bank of Nigeria (CBN) in 2007
and listed on the Nigerian Stock Exchange as the first private sector
led Microfinance Bank in 2012.
READ MORE: Best Pocket-friendly Data Plans For Nigerian SMEs

Fortis MFB is actively going about implementing its mission to provide

a wide range of financial services to a substantial and diversified client
base that includes low income earners and households, low-end
entrepreneurs, the under banked, cooperatives and high-net-worth
individuals among others.
It is also positioning itself to provide a viable business model that
provides access and financial empowerment to those on the base of
the economic pyramid that constitute over 80% of the about 164
million Nigerians and also provide appreciable returns on investments.
e-banking: Yes
Ease of use: 8 (On a scale of 1-10 where 10 is the best)
Head office: Plot 2135, Herbert Macaulay Way, Wuse Zone 5, Abuja.
Website: www.fortismfb.com
6. Fina Trust Microfinance Bank:

Fina Trust Microfinance Bank is one of

Nigerias foremost Microfinance Bank. Its final license was secured
from the Central Bank of Nigeria in September 2009 as Microfinance
Bank and commenced operations in October 2009.
Priding itself as the fastest growing Microfinance Bank in Nigeria,
FinaTrust shares the privilege of empowering its customers with
business loans in excess of NGN 20 billion over the last 5 years.

Realising that todays banking should be borderlss without restrictions,

FinaTrust smartly developed an unparalleled strategic alliance with
Sterling Bank Plc and Fidelity Bank Plc to enable its customers deposit
or withdraw from any of these banks branches. This opportunity
creates over 250 strategic locations for FinaTrust customers to
transact.
e-banking: Yes
Ease of access use: 7 (on a scale of 1-10, 10 being the best)
Website: www.finatrustmfbank.com
Head Office: 46, Toyin Street, Ikeja, Lagos, Nigeria.
7. Olive MFB:

Incorporated on October 25, 2007, Olive got its

approval to operate as a microfinance bank on January 15, 2008.
Since then the bank has not for once looked back. The bank is set to
actualize the philosophy of its founders, which is to fill the gap in the
peoples general banking needs while also building a world-class
financial institution that will be a pride to this country.
To remain relevant in this digital age, Olive mfb will have to do a
thorough overhauling of its website as what it currently presents as
website is a far cry from what its contemporary are presenting.
Online banking: None existent
Head Office: 150 Awolowo Road, Ikeja, Lagos, Nigeria
Website: www.olivemfb.com
Ease of use: 7 (on a scale of 1-10, 10 being the best)

8. Letshego:

This microfinance bank should have

been in the top three but for the ongoing changes going on at the
bank. Formerly FBN Microfinance bank, Letshego Botswana acquired
the prestigious FBN microfinance bank and is planning to take it to a
whole new level. Like most customers and members of the public, we
are waiting for the outcome of the change at this bank. Nevertheless,
Letshego made it into our list based on its enviable past records as FBN
microfinance bank.
READ MORE: What You Should And Shouldnt Do With Your Small
Business Loan

Website: www.letshego.com
9. Page Microfinance Bank:

As one of the leading retail financial

institutions located in the business hub of africa, Page creates a
dynamic avenue to deliver unique and customer focused services
through its savings, deposit and loan products accessible at its various
Virtual Banking Channels.
With its exceptional use of technology, PageMFB has built a platform
that offers convenient banking which is powered by the Page Card (In
partnership with Mastercard) whilst its multiple access points provides
secure, round the clock connection to each and every one of what it
calls its Transumer (Retail Consumers in transition).
Page Microfinance Bank offers personal loans and deposits at very
competitive rates!

Head office: No. 23, Norman Williams Street, SW Ikoyi, Lagos

Website: www.pagemfbank.com
e-banking: Yes
Online loan application: Yes
Other Upcoming SME-friendly Microfinance Banks To Watch Out
For
10. Capstone Microfinance Bank

Capstone Microfinance Bank Limited,

is a Single Unit Microfinance bank in the process of obtaining a State
License. The bank was incorporated as a private limited liability
company in July, 2008. Capstone microfinance bank was incorporated
as a private limited liability company in July, 2008. It boasts of
authorized share capital of N100 Million and fully paid up capital of N50
million.
Capstone microfinance bank also boasts of over 18,000 customer base
made up of 87% female. The bank has also empowered over 8,000
active poor Nigerians and introduced health insurance to over 3,000
Nigerian families. The bank has also trained over 2,000 women on
various vocations ranging from soap making, baking and laundry
services.
The banks target market constitutes active poor people especially
women living in the urban and semi-urban localities of Lagos State.
Micro entrepreneurs and small scale business owners also form part of
the banks target market.
The bank has given loan of about N1.5 Billion to over 9,000 customers
from October 2008 to date. The bank was also well-rated at the 2013
Risk Based Enterprise examination carried out on it in March 2013.
Website: www.capstonemfb.com
Head Office: 187, Igbosere Road, Lagos Island, Lagos, P.O.B. 53206,
Falomo, Ikoyi, Lagos.
e-banking: Non existent
Online loan application: Non-existent