MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Grants National Microfinance Banking License to Fortis Microfinance Bank (Fortis MFB)

The Central Bank of Nigeria (CBN) recently granted a microfinance banking license to Fortis Microfinance Bank (Fortis MFB), a privately owned microfinance institution in Nigeria [1]. Fortis MFB was licensed as a financial institution by CBN in 2007 and became the first privately owned microfinance bank to be listed on the Nigerian Stock Exchange in 2012. It offers financial services such as savings accounts, microcredit programs and mobile payment services to micro-, small and medium-sized enterprises (MSMEs) as well as to low-income individuals [2].

Felix Achibiri, the Chairman of Fortis MFB, stated that with this new banking license, “Fortis will be driving the Central Bank of Nigeria’s financial inclusion programme across the country by providing financial services to all the states of the federation”[1], expanding its provision of microfinance services from Abuja and the northern parts of Nigeria to the rest of the nation [1].

As of 2015, Fortis MFB reports total assets of NGN 16.8 billion (USD 84.3 million) and return on equity of 10.0 percent. As of 2013, Fortis MFB reported a gross loan portfolio of USD 52.2 million and 34,020 active borrowers.

By Hye In Arielle Oh, Research Associate

About Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the act of parliament that created CBN, its statutory mandates are to issue currency and sustain its international value as well as to maintain monetary stability and a sound financial system by acting as the banker and financial adviser of the federal government of Nigeria.

About Fortis Microfinance Bank Private Limited Company (Fortis MFB)

Headquartered in Abuja, Nigeria, Fortis Microfinance Bank (Fortis MFB) began operating in 2007 and in 2012 became the first privately owned microfinance bank to be listed on the Nigerian Stock Exchange. In 2015, the organization received a national microfinance banking license from the Central Bank of Nigeria (CBN) and it reports 14 branches in the country as of that year. Fortis MFB offers financial services to micro-, small and medium-sized enterprises (MSMEs) as well as to low-income individuals while its subsidiary, Fortis Mobile Money, offers mobile payment services. As of 2015, Fortis MFB reports total assets of NGN 16.8 billion (USD 84.3 million) and return on equity of 10.0 percent. As of 2013, it reported a gross loan portfolio of USD 52.2 million and 34,020 active borrowers.

Sources and Additional Resources:

[1] Leadership: “Fortis MFB Gets National License from CBN,” http://leadership.ng/business/456262/fortis-mfb-gets-national-license-from-cbn

[2] Fortis Microfinance Bank: “Corporate Information,” http://www.fortismfb.com/corporate.php

[3] Business Day: “Fortis microfinance bank taps Nigeria large market as earnings spike,” http://businessdayonline.com/2015/09/fortis-microfinance-bank-taps-nigeria-large-market-as-earnings-spike/

[4] MIX Market: “MFI Report – Fortis MFB,” http://reports.mixmarket.org/mfi/fortis-mfb

MicroCapital Universe Profile: “Central Bank of Nigeria (CBN),” http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29

MicroCapital Universe Profile: “Fortis Microfinance Bank Plc (Fortis MFB),” http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Fortis+Microfinance+Bank

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