Agence Française de Développement (AFD), France’s international development agency, has announced a long-term credit line of NGN 1 billion (USD 6.3 million) to Lift Above Poverty Organization (LAPO), a Nigerian microfinance institution (MFI), to support an affordable housing project that aims to enable low-income families in Nigeria to construct or improve their housing [1]. LAPO has committed an additional NGN 300 million (USD 2 million) to the project that will be available after an unspecified period of time. The project is supported by Lafarge Nigeria, a subsidiary of the French construction materials company Lafarge, which will provide technical assistance to the families. The project is expected to benefit 3,500 poor people in Nigeria within three years.
As of 2012, LAPO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 132 million, a gross loan portfolio of USD 108 million, return on assets (ROA) of 9.53 percent, return on equity (ROE) of 53.8 percent and approximately 559,000 borrowers. LAPO reported USD 63 million in deposits from approximately 757,000 depositors as of the same year.
As of 2012, AFD finances development projects in approximately 90 countries across four continents and reported total assets of USD 33 billion.
As of December 2012, Lafarge reported total assets of USD 53 billion.
By Nisha Koul, Research Associate
About Lift Above Poverty Organization (LAPO): Lift Above Poverty Organization (LAPO), established in 1987 in Nigeria, is a microfinance institution (MFI) that provides savings, investment and loan products intended to address the needs of low-income households. The majority of LAPO’s clients are engaged in micro-, small and medium-sized enterprises (MSMEs). As of 2012, LAPO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 132 million, a gross loan portfolio of USD 108 million, return on assets (ROA) of 9.53 percent, return on equity (ROE) of 53.8 percent and approximately 559,000 borrowers. LAPO reported USD 63 million in deposits from approximately 757,000 depositors as of the same year.
About Agence Française de Développement (AFD): Established in 1941, Agence Française de Développement (AFD) is a bilateral development finance institution whose public mandate is to finance development according to the overseas development assistance policies of the French government. AFD finances development projects in approximately 90 countries across four continents. As of 2012, AFD reported total assets of USD 33 billion.
Sources and Additional Resources:
[1] Lafarge Press Release, “Lafarge nigeria, AFD and LAPO launch N1.3b Affordable Housing Project,” http://www.lafarge.com.ng/wps/portal/ng/7_2-Press_release?WCM_GLOBAL_CONTEXT=/wps/wcm/connectlib_ng/Site_ng/AllPR/PressRelease_1382954093109/PR_Header
MicroCapital Story, November 29, 2012, “International Finance Corporation (IFC) Loans $5m to Lift Above Poverty Organization (LAPO) of Nigeria,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-5m-to-lift-above-poverty-organization-lapo-of-nigeria/
MicroCapital Story, October 16, 2013, “World Bank’s International Development Association (IDA) Approves $300m Credit to Support “Housing Finance Project,” Housing Microfinance, in Nigeria,” https://www.microcapital.org/microcapital-brief-world-banks-international-development-association-ida-approves-300m-credit-to-support-housing-finance-project-housing-microfinance-in-nigeria/
MicroCapital Universe Profile, Lift Above Poverty Organization (LAPO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lift+Above+Poverty+Organisation+%28LAPO%29
MicroCapital Universe Profile, Agence Française de Développement (AFD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+%28AFD%29
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