Ecobank launches SME microfinance offer in Nigeria

Aug 30, 2013

The microfinance sector in Nigeria should experience a boost with the arrival of the Pan-African banking group Ecobank in this industry.

The microfinance sector in Nigeria should experience a boost with the arrival of the Pan-African banking group Ecobank in this industry.

Since June 2013, Ecobank Nigeria offers a micro-finance solution to small and medium-sized
entrepreneurs.

Oyakhamoh Felix, Director of Ecobank microfinance department, told the newspaper Jeune Afrique that the service targets entrepreneurs with a turnover of less than N1 million (about €4,600) and consist of loans of up to N500,000 with a monthly rate revolving around four percent, for periods ranging from six months to a year.

He added that borrowers will not need collateral but guarantors agreeing to repay the loan in case of default.

The company hopes to reach 200,000 subscribers by next year, and the offer could be extended to other countries where the banking group is present.

This should enable small and medium-sized
enterprises, which represent 90 percent of companies, to find new sources of funding, thus boosting their development and the country's economic growth.ADNFCR-2976-ID-801631350-ADNFCR