Microfinance Banks
Microfinance banks are financial institutions licensed by the central bank to carry out business of providing financial services to the micro-sector of the economy. Some of the activities of microfinance include:
accepting deposits and savings from less income earner individuals, groups and micro, small and medium enterprises,
providing short-term loans to individuals, groups and MSMEs,
domestic funds transfer and
non-financial services.
Microfinance banks are very important in an economy as the objectives in an economy include:
To make financial services available to potentially productive unbanked population of the society
To integrate the informal sector of the economy into the financial system
Enhance financial service delivery to the MSMEs
To eradicate gender inequality by improving women`s access to financial services
To serve as a medium through which government and development banks` empowerment programmes could reach the rural dwellers, smallholder farmers, artisans etc.
Support agricultural development and sustainability.
Microfinance banks as well as Fintech companies play important roles in achieving financial inclusion in Nigeria. According to report, only about 64% of the adult population in Nigeria are financially included.
In Nigeria, there are about 916 microfinance banks licensed by Central Bank of Nigeria to provide essential financial services to low-income earners, unbanked population.
In this article we have compiled top 20 microfinance banks in Nigeria
Top 20 Microfinance Banks
- LAPO Microfinance Bank
- ACCION Microfinance Bank
- Mutual Trust Microfinance Bank
- AB Microfinance Bank
- KUDA Microfinance BankAssets Microfinance Bank
- VFD Microfinance Bank
- Fina Trust Microfinance Bank
- BoI Microfinance Bank
- NIRSAL Microfinance Bank
- Sparkle Microfinance Bank
- Anddosser Microfinance Bank
LAPO Microfinance Bank was established with the primary purpose of helping less-privileged Nigerians to cope with the harsh economic realities that followed the Structural Adjustment Programme of government of General Ibrahim Babangida in 1980s.
LAPO Microfinance has since then metamorphosed into one Nigeria’s most reputable MFBs, which it achieved through its consistent effort to ensure that low-income households in Nigeria have access to funds for economically empowerment.
LAPO is a household name when it comes to microfinance services in Nigeria, is rated the best financially inclusive microfinance bank in Nigeria in 2022.
The company provides sustainable financial services.
ACCION Microfinance Bank Limited
Established in 2006 ACCION Microfinance Bank started operations in 2007 with the aim of empowering MSMSEs and low-income earners.
The bank offers sustainable, ethical, and profitable financial services which include provision of loans for small businesses, homeownership, education, and so much more
You can get quick loans of up to N150,000 via ACCION’s mobile banking or USSD channels.
Mutual Trust Microfinance Bank
Mutual Trust MFB ranks high in microfinance services in Nigeria.
Since April 2016, The bank rebranded itself from Mark de Rock Microfinance Ltd to Mutual Trust Microfinance Bank Limited, and changed its management in 2016. Since then, the company has been on a mission to redefine microfinance services in Nigeria.
The institution provides excellent financial services by deploying cutting-edge technology and a highly experienced staff
It takes less than 10 minutes to apply for a loan in the company, and loan application is approved within 10 hours after screening.
It offers very flexible repayment plans that allow customers to easily pay back their loans with less stress.
AB Microfinance Bank
AB Microfinance Bank is on of the leading microfinance banks in Nigeria.
The bank described as “a socially responsible bank of choice for micro and small enterprises” was established in 2008.
It offers micro-loans, SME loans, and housing loans.
The bank customers can also operate savings accounts, current accounts, and fixed deposit accounts and have access to mobile banking services.
KUDA Microfinance Bank
KUDA Microfinance Bank is one of the MFB that are redefining microfinance services in Nigeria by leveraging financial technologies
The company which started as Kudimoney, offers online-only savings and digital lending. It later transformed to KUDA, raised over $90 million in fund, and popularized itself among the youth as “the bank of the free.”
KUDA Bank has become major microfinance bank as it has millions users who have downloaded its apps from app stores, and new users are signing up every day. Its simplified banking app makes it very easy to register and get access to a wide array of banking services.
Assets Microfinance Bank
Assets Microfinance Bank was established by the Central Bank of Nigeria to provide personal, business, and payday loans services to Nigerians.
The bank also offers savings and investment services.
It has unique products specifically targeted at empowering businesses.
Fina Trust Microfinance Bank
Fina Trust Microfinance Bank is one of top microfinance banks in Nigeria.
Established in 2009, Fina Trust Microfinance Bank is affiliate of LOLC Group, the largest non-banking corporate entity in Sri Lanka.
Some of the financial services offered by the bank include quick loans, salary advance, SME loans, education loans, financial asset financing, savings accounts, current accounts, and fixed deposit accounts.
Sparkle Microfinance Bank
Sparkle Microfinance Bank was established in 2019 by Uzoma Dozie former MD, defunct Diamond Bank
The bank which relies on technology to offer financial services through mobile app, says it intends to make access to individuals and small business seamless.
BoI Microfinance Bank
BoI Microfinance Bank is a subsidiary of Bank of Industry, a Nigerian Government owned development bank.
Bank of Industry was established with the mandate of providing financial assistance for the establishment of small, medium and large business projects and for the expansion, diversification and modernisation of existing ones.
Its Microfinance Bank caters to SMEs and low-income earners.
Apart from loans provisions, BoI Microfinance Bank also provides savings deposit services.
The bank’s commitment is to encourage entrepreneurship through the provision of easy loans.
Founded in 2002, the bank gets funding from its parent-bank, Bank of Industry.
Reals Also: Development Banks in Nigeria and Their Functions
NIRSAL Microfinance Bank
NIRSAL Microfinance Bank (NMFB) is a Nigerian Financial Institution licensed by the Central Bank of Nigeria (CBN) to carry out specialized banking services. NMFB was incorporated as a Private Limited Company in 2019 and commenced operations, following the grant of a National Microfinance Bank license by the Central Bank of Nigeria, in the same year.
NIRSAL Microfinance Bank is primarily an Intervention Bank; a viable channel for the on-lending of special funds from the Central Bank of Nigeria to qualified citizens of Nigeria. The Bank is Owned 75% by the Bankers Committee, 15% by NIRSAL and 10% NIPOST.
Currently, NIRSAL Microfinance Bank has its headquarters in Abuja, with a network of 115 branches in all the states of the Federation.
Whether you are interested in Micro savings, micro loans or you simply want a school targeted loans you can get it from NMFB.