Nigeria: AfDB signs loan agreement to develop microfinance bank
This envelope will boost SMEs' access to finance in the country.LAPO Microfinance Bank has signed a 2.4 billion nairas (€11.2 million) loan agreement with the African Development Bank (AfDB) to support small and medium-sized enterprises (SMEs) in Nigeria.
The funding will support a project to boost LAPO's growth and help it achieve its goal to serve five million clients by 2017 in Nigeria, focusing on low-income individuals (predominantly women) and small enterprises.
AfDB said in a statement that the loan is expected to increase the proportion of poor households and small businesses with access to financial services in Nigeria, while deepening the country's financial sector infrastructure and promoting an inclusive microfinance model that works for the poor.
It added it will also stimulate product development aimed at meeting diverse needs of low-income households and local enterprises and will enhance financial inclusion of women and female entrepreneurs.
LAPO is the largest microfinance bank in Nigeria with 1.1 million clients and 327 branches across the country.