The Nigerian Federal Government and the World Bank have approved grants totaling USD 8.4 million for six Nigerian microfinance institutions (MFIs). The Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Mr. Mustafa Bello, made the announcement at the Business Development Services (BDS) Fair, organized by the World Bank’s Micro, Small and Medium Enterprises Project (MSME) in Lagos. The six MFIs are ACCION Microfinance Bank (AMfB), Susu Microfinance Bank, Integrated Microfinance Bank Ltd. (IMFB), MIC Microfinance Bank, LFS, and MicroCredit. No breakdown of the grant money between the MFI’s or what it was to be used for was available.
The World Bank’s Micro, Small and Medium Enterprise Project in Nigeria aims to increase the performance and employment levels of MSMEs in selected non-oil industry sub-sectors and in three targeted states of the country: Abia, Kaduna, and Lagos. The total amount budgeted for the project is USD 60 million, of which USD 32 million is to come from the International Development Association (IDA), a division of the World Bank, and USD 24.6 million to come from local Nigerian sources. To visit the project’s website, click here.
The Business Development Services Fund is a component of the MSME Project. The BDS Fund offers matching performance grants to business development service providers serving any and all MSME sectors and promotes supply and demand of business development services through its industry supply chain development program. Mr. Mustafa Bello said that another USD 3 million grant had been awarded to 58 BDS providers across Nigeria. No additional information on the recipients was available. For more information on the BDS Program or for an application, click here.
ACCION Microfinance Bank was established in 2006 and is based in Lagos, Nigeria. According to the MIX Market, the microfinance information clearinghouse, as of December 31, 2007 AMfB had approximately 1,076 active borrowers and 1,030 savers, a gross loan portfolio of USD 760,000 and total assets of USD 5.7 million. As of the same date, debt-to-equity was 28.83 percent, ROE was -26.65 percent and ROA was -22.34 percent. AMfB’s shareholders are ACCION Investments, Ecobank, IFC, Nigeria International Bank, SME Managers, and Zenith Bank.
Susu Microfinance Bank was also established in 2006 and based in Lagos. The bank has two branches and ten meeting points, or mini-branches where customers can interface with bank staff and transact limited business. The MIX does not report on Susu Microfinance Bank and the company’s website does not provide financials.
Integrated Microfinance Bank, established in 2006 and based in Lagos, has 14 branches and 81 business offices. According to the MIX, as of September 30, 2007 the bank had 6,200 active borrowers and 47,423 savers. Gross loans totaled USD 24.5 million, total assets were USD 42.4 million, and debt-to-equity was 124.31 percent. ROE was 6.98 percent and ROA was 2.65 percent. According to the company’s 2008 financial statements, as of September 30, 2008 total assets were USD 33.4 million and gross loans totaled USD 19.3 million.
LFS Financial Systems GmbH is an international consulting company specializing in micro and small business finance projects. In 2006 LFS established Access Microfinance Holding AG (AccessHolding) with a group of international investors. AccessHolding has invested in four microfinance banks, including a 65.1 percent share of AB Microfinance Bank Nigeria Ltd.
No additional information could be found on the two other cited microfinance banks, MIC Microfinance Bank or Micro Credit.
The Nigerian Investment Promotion Commission is a Nigerian Federal Government Agency designed to promote investments in Nigeria through objectives such as reducing the cost of starting a business, simplifying business approval procedures, and ensuring transparency. Budget information of the NIPC was not available for this story.
By Laura Anderson, Research Associate
Additional Resources:
The Tide Online: 6 Microfinance Banks get $8.4 million Credit Facility
World Bank: Home, Micro, Small and Medium Enterprise Project, IDA
Micro, Small and Medium Enterprise Project Nigeria: Home
Business Development Services Fund: Home
ACCION Microfinance Bank: Home
Susu Microfinance Bank: Home
Integrated Microfinance Bank: Home
The MIX Market: Home, ACCION MfB Profile, IMFB Profile
LFS Financial Systems GmbH: Home
Nigerian Investment Promotion Commission: Home
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