MICROCAPITAL STORY: ACCION Microfinance Bank Limited of Nigeria Has Reached Total Assets of USD 9.1 Million

The ACCION Microfinance Bank Limited (AmfB) of Nigeria which was incorporated in May 2006 and granted an operating license by the Central Bank of Nigeria in April 2007 [1], announced that it has reached a benchmark in serving over 10,000 customers with USD 10.1 million worth of loans disbursed [2]. A further look at its financials reveals other key numbers.

This news was delivered by the Managing Director and CEO, Bunmi Lawson, at the AMfB’s Annual General Meeting in Lagos where the year end statistics revealed USD 9.1 million in total assets, USD 4.8 million in active loan portfolios, over 8,600 active borrowers and over 20,000 saving customers with USD 0.96 million in saving deposits [3]. AMfB reports to the Mix Market is shown to have had 1,076 active borrowers, 1,030 active savers, a gross loan portfolio of USD 760,000 and total assets worth USD 5.7 million at the end of 2007. Zero borrowers or loans were present at the end of 2006. AMfB has a debt to equity ratio of 28.83 percent and a return on assets and return on equity of -22.34 and -26.65 percent respectively, in 2007 at year end [4]. However no rating was available.

AMfB partners with ACCION International in Nigeria for technical assistance in the areas of implementation, information technology and staff training. Accion Investments in Microfinance, SPC, a Boston-based investment arm of Accion International invested a twenty-four percent share of initial capital and has maintained its ownership percentage. AMfB’s Bunmi Lawson is also an Accion resident advisor [5].

During 2008, AMfB increased its number of locations to ten, consisting of seven branches and three business units, and its number of staff from 100 to 150. Further more, shareholders’ paid-up capital, which is the portion of authorized stock that has been issued and for which payment has been received, reached USD 6.1 million from USD 3.9 million of the previous year [6]. In October AMfB was also nominated as one of Africa’s best micro finance banks [7]. “We got nominated as the African Microfinance Bank of the year together with giants in the African microfinance industry and equity bank, a sure sign of great expectation from the bank in the future”, Lawson said [8]

With the start of 2009, AMfB has already received a grant from the Nigerian Federal Government and the World Bank. The amount of USD 8.4 million was shared between 6 banks; no specific details were given [9]. AMfB plans to continue increasing its network of clients as well as channels for the delivery of its service.

Aiwen Xu Research Assistant

Bibliography :

[1] ACCION Microfinance Bank Limited (AMfB). http://www.accionmfb.com

[2] Akinsuyi, Yemi. “Microfinance Bank Disburses N1.5 bn for Poverty”, www.thisdayonline.com,http://www.thisdayonline.com/nview.php?id=146277, June 17, 2009.

[3] see 2 above.

[4] The Mix Market, ACCION Microfinance Bank Limited Profile,http://www.mixmarket.org/en/demand/demand.show.profile.asp?token=&ett=26…

[5] ACCION International, AMfB parnertship, http://www.accion.org/Page.aspx?pid=1002

[6] ACCION Microfinance Bank, Chairman’s Speech, http://www.accionmfb.com/about/statement.aspx

[6] Holmes, Iyanna, “Equity Bank Wins Best Micro Finance Bank in Africa Award at the African Bankers Awards in Washington DS”, www.microcapital.org, https://www.microcapital.org/microcapital-story-equity-bank-wins-best-mic…, October 22, 2009.

[8] see 2 above.

[9]Anderson, Laura,”World Bank and Federal government of Nigeria Approve USD 8.4 milion in Grants for Microfinance Institutions ACCION Microfinance Bank (AMfB), Susu Microfinance Bank, LFS, MIC Microfinance Bank, Integrated Microfinance Bank (IMFB) and Micro Credit”, www.microcapital.org, https://www.microcapital.org/microcapital-story-world-bank-and-federal-go…, May 18, 2009.

Similar Posts: