The Board of Governors of the African Development Bank Group has approved $12m line of credit through its private sector window to LAPO Microfinance Bank.

A statement by LAPO on Thursday said the LOC, which was approved last week, would support the bank’s expansion plans and its aim to build its client base within the next few years.

It added that specifically, the LOC would help the bank to achieve its goal of serving five million clients by 2017 in Nigeria, focusing on low-income individuals (predominantly women) and micro/small enterprises.

This, it explained would be done by providing affordable access to finance, saving, credit and insurance in urban and rural areas as well as by expanding its geographic coverage and number of branches.

The statement said, “With AfDB’s funding, multifaceted development outcomes are expected for LAPO MfB to increase the proportion of poor households and small businesses with access to financial services in Nigeria and deepen its financial sector infrastructure, as it plans to expand its branch network across the country.

“The fund will also help to promote an inclusive microfinance model that works for the poor, stimulate product development aimed at meeting diverse needs of low-income households and local enterprises and enhance financial inclusion of women and female entrepreneurs.”

The statement added that the fund would also support increased revenue of poor households involved in profitable micro enterprises and also generate more jobs across states in Nigeria.

According to the statement, LAPO MfB has 1.1 million clients and 327 branches currently operating in 26 of the 36 states in the country.

It explained that with its history of a group-lending model structured on a community-based approach, LAPO predominantly focuses on low-income households and women (with females comprising over 90 per cent of its total client base).

Punch