AfDB approves U.S$12m credit to Lapo Microfinance Bank

The African Development Bank Group (AfDB) through its private sector window has approved a $12 million line of credit (LOC) to LAPO Microfinance Bank (LAPO MfB) in Nigeria.
LAPO MfB is believed the largest microfinance bank in Nigeria with 1.1 million clients and 327 branches currently operating in 26 out of 36 states in the country.

In spite of its lower-income client base, its total loan portfolio exceeded USD 144 million in December 2013. LAPO has successfully achieved its goal to reach over 1 million clients by end of 2013, and targets to reach five million clients by the end of its five-year business plan (2013-2017).
The LOC will support proposed project will support expansion of LAPO MfB to achieve its goal to serve five million clients by 2017 in Nigeria focusing on low-income individuals (predominantly women) and micro/small enterprises by providing affordable access to finance, saving, credit and insurance in urban and rural areas as well as by expanding its geographic coverage and number of branches.

With AfDB’s funding, multifaceted development outcomes are expected for LAPO MfB to increase the proportion of poor households and small businesses with access to financial services in Nigeria, deepen its financial sector infrastructure, and promote an inclusive microfinance model that works for the poor.
It will also stimulate product development aimed at meeting diverse needs of low-income households and local enterprises, enhance financial inclusion of women and female entrepreneurs, and support increased revenue of poor households involved in profitable micro enterprises and also generate more jobs across states in Nigeria.