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E-Financial

LAPO MFB: A commendable Half Year despite the Pandemic

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By Paul K Adegboyega

Undoubtedly, 2021 – the second year of the Covid-19 pandemic – has been another tough year for many Nigerians especially low-income earners who have limited access to financial services.

LAPO MFB: A commendable Half Year despite the Pandemic

It has also been a difficult year for the microfinance banks (MFBs) which serve this indigent category who have increased difficulty paying back loans since the pandemic started.

Many MFBs are facing serious challenges, some existential, that are threatening their bottom lines and very survival.

Therefore it is commendable to find a microfinance bank that is not only weathering the pandemic’s many disruptions, sustaining critical services to entrepreneurs and low-income earners but also maintaining the rigorous standards that it is well known for.

Within the first six months of 2021, LAPO, Nigeria’s largest MFB has distinguished itself through continued high performance while serving its millions of customers and also responding to the prevailing health and safety challenges.

As the year began, LAPO continued to prioritize the health and safety of its customers and staff through various initiatives including its intensive campaigns promoting pandemic awareness on social media platforms.

It will be recalled that in 2020 LAPO had taken many proactive measures in response to the pandemic.

For instance, it shut down its on-site operations on March 25 2020, ahead of the Federal Government’s own lockdown order and also paused interest payments on its loans for six weeks.

The institution also distributed food and other relief items across Nigeria, made donations to the Edo and Lagos State Governments to support their efforts in addressing the pandemic and sustained its own Covid-19 awareness campaigns on radio stations and online platforms even after resuming on-site operations.

With business activities picking up following the Christmas holidays and amidst great uncertainty about vaccination, new waves of infection, new variants of Covid-19, etc, LAPO also boosted its advocacy efforts to encourage customers and the public to keep taking precautions.

In addition to the usual difficulties of meeting obligations such as paying school fees, house and business rents etc at the beginning of the year, small and medium scale entrepreneurs also face the challenge of acquiring or updating critical business assets.

Therefore it was helpful that LAPO also began the year by promoting a slew of customer-friendly products to the public in the New Year.

Such products include LAPO’s Collateral-free Asset Loans which help people pay for Generators, Tricycles, Refrigerators, Pure Water Machines, Printing Machines and other items often needed by small businesses.

The adverts encouraged business owners to come forward even if the business assets they needed were not among those listed.

The bank also promoted a bouquet of educational loans including the School Fees Loans which provide N20,000 to N200,000 for parents with children in primary school and N50,000 to N500,000 for those with undergraduate wards.

These education loans were timely considering that many parents are finding it difficult to keep their children in school due to lay-offs, failing businesses and other economic hardships related to the pandemic.

LAPO also announced the School Improvement Loan through which it provides much-needed finance to proprietors of low to medium income nursery, primary and secondary schools to help them improve their facilities and equipment.

LAPO continues to offer access to microcredit through these and other unique products such as its My Pikin and I Loan, its Clean Energy Loans, SME Loans, among others.

As a testament to the importance of microcredit and a nod to LAPO’s reputation, the institution was cited by an Arise TV anchor during a February edition of The Morning Show which featured former Governor Peter Obi.

“How do we increase banks like LAPO to get people microcredit to do business?” said the anchor as he discussed economic matters with the former Governor.

On its own, the bank continues to increase access of underserved populations to microcredit as seen in its growing presence across the country.

By February, LAPO announced that it was available in 535 locations across 34 states through which it serves over three million customers.

Also in February, to lift the spirits of its numerous customers and encourage them morally to push through the difficulties of the pandemic, LAPO organised a nationwide celebration in which it gave gifts to customers to mark Valentine’s Day.

LAPO recorded more wins in March as it was awarded ‘The Most Supportive Bank’ national category in the Central Bank of Nigeria (CBN) Agricultural Credit Scheme Funds (ACGSF), evidence of its continual support of the Agricultural Sector.

The institution was also commended by the CBN for financing and producing the best farmer in 2020 under the ACGSF. LAPO joined the Agricultural Credit Guarantee Scheme Fund (ACGSF) in 2012 to provide credit support to farmers across the country in a sustainable manner. Since then it has disbursed over N27 Billion to over 34,000 farmers and agro-allied operators across Nigeria.

Following the award, LAPO sustained its momentum in March. In building on its culture of providing financial literacy to various key demographics, the institution embarked on campaigns to mark the 2021 Global Money Week from March 22 to 28 which raised awareness on the importance of ensuring that from a young age, people become financially literate and build good money habits.

In line with this focus, the institution made sensitization visits to various schools and also organized a webinar designed to train youths on Money Management, Saving Skills, and Career Development, among others.

As an institution LAPO remains an active promoter of good financial practices and a credible authority on financial inclusion. So it was no surprise that its Founder and Chairman, Dr. Godwin Ehigiamusoe was chosen to deliver the keynote address at the 6th Annual Symposium of the Nigerian Microfinance Platform on April 29 on the topic: Measures for Deepening the Financial Inclusion Drive in the Country.

As the year approached its mid-point, LAPO continued to balance its disbursement of bespoke loans and other material support with providing education and awareness to its customers and the general public.

Most recently, on June 11 and 12, LAPO hosted a two day seminar to train business owners to boost their reach and increase customer patronage by effectively using social media platforms like Facebook and Instagram, especially through targeted advertising.

LAPO’s sustained efforts to adequately cater to the critical demographics it serves in spite of prevailing challenges are commendable and as described by the television anchor, worth emulating.

*Adegboyega is a policy analyst.


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E-Financial

Smartcash PSB Launches Access to Instant Motor Insurance via Leadway Assurance

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In continuation of its mission to make financial services simpler, faster, and more accessible, SmartCash Payment Service Bank, a subsidiary of Airtel Nigeria, has announced a strategic partnership with Leadway Assurance to offer Smartcash users an effortless access to Leadway’s mobile-friendly motor insurance service.

Starting from ₦15,000, this new offering provides a convenient and affordable way for motorists to stay protected and compliant with national insurance requirements. With this collaboration, new and existing Smartcash customers can now acquire or renew two types of Leadway Assurance motor insurance: the Third-Party Insurance and AutoBase Comprehensive Insurance, directly on the Smartcash app or by dialling *939#.

While the third-party motor insurance plan offers the legally required minimum cover, protecting motorists from liability for damages or injuries caused to others, the AutoBase Comprehensive Insurance plan extends that protection to cover the user’s own vehicle in the event of accidents.

Commenting on this partnership, Chief Executive Officer, Smartcash PSB, Tunde Kuponiyi highlighted the importance of the collaboration in driving convenient and inclusive insurance access for Nigerians.

“At Smartcash, our goal has always been to bring inclusive financial solutions closer to everyday Nigerians. By partnering with Leadway Assurance, we’re making it easier for motorists to insure their vehicles without stress or delays. It’s insurance that moves at your speed,” he said.

He also noted that Smartcash users can complete the entire purchase process in under three minutes, from plan selection to payment with no physical paperwork or documentation required. Customers receive instant confirmation and their digital policy documents via email, making insurance more accessible than ever.

Also speaking on the partnership, Kike Fischer, Director, Sales, Retail and Partnership, Leadway Assurance, added: “At Leadway, innovation and exceptional service are at the core of our mission to deepen insurance penetration and inclusion.

“This collaboration with SmartCash enables us to deliver real-time protection to more Nigerians via a trusted, everyday platform. It marks a bold step in transforming how insurance is accessed and experienced across the country.”

The insurance integrated service is also fully inclusive, as it works across all types of mobile phones. Users without smartphones or internet access can access the same features via USSD, ensuring nationwide reach, especially in rural and underserved areas.

This partnership reinforces Smartcash’s commitment to delivering digital-first financial services that meet the real-world needs of Nigerians. By simplifying access to essential products like motor insurance, Smartcash continues to empower users with tools that protect, support, and uplift their daily lives.

 


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E-Financial

Fidelity Bank Refutes ₦5 Billion Bail Payment Claim, Labels Report “False”

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Fidelity Bank has dismissed allegations that its Managing Director, Nneka Onyeali-Ikpe, paid ₦5 billion to evade police detention amid an ongoing fraud investigation.

The bank described the report, published by Sahara Reporters, as “malicious” and aimed at misleading the public.

The controversy arose from a recorded conversation in which Onyeali-Ikpe allegedly referenced ₦5 billion in connection with her bail.

However, Fidelity Bank clarified that the amount referenced was a bail bond signed on self-recognizance—not a direct payment to the police.

Authorities later withdrew fraud charges against Onyeali-Ikpe, with the Attorney General of the Federation citing justice, fairness, and lack of evidence implicating her in the matter.

Fidelity Bank emphasized its commitment to strong corporate governance and adherence to ethical standards.


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E-Financial

CBN Suspends Dividend, Bonus Payments for Banks under Forbearance

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Central Bank of Nigeria (CBN) has suspended dividend payments to shareholders and bonuses to directors and senior management staff of banks currently benefiting from regulatory forbearance.

CBN Suspends Dividend, Bonus Payments for Banks under Forbearance

Forbearance refers to the temporary reduction or postponement of payments, such as for loans or mortgages, usually introduced to give temporary relief to individuals, and corporations, including financial institutions encumbered by financial straits.

The directive was contained in a circular dated June 13, signed by Olubukola Akinwunmi, director of Banking Supervision, CBN.

According to the CBN, the move is part of efforts to strengthen capital buffers, enhance balance sheet resilience and promote prudent internal capital retention within the banking sector during what it described as a transitional period.

The regulatory forbearance arrangement, which allows banks some relief in meeting credit exposure and Single Obligor Limit (SOL) requirements, is currently being reviewed by the central bank in terms of capital positions and provisioning adequacy.

As part of this review, the CBN directed affected banks to suspend dividend payments, defer bonuses, and refrain from making investments in foreign subsidiaries or launching new offshore ventures.

“This temporary suspension is until such a time as the regulatory forbearance is fully exited and the banks’ capital adequacy and provisioning levels are independently verified to be fully compliant with prevailing standards,” the CBN said.

The bank added that the measure is to ensure that internal resources are retained to meet existing and future obligations and support “the orderly restoration of sound prudential positions.”

The CBN also said it will continue to monitor developments and engage with institutions as necessary.

The move comes amid efforts to tighten supervision across the financial system following recent banking sector reforms and recapitalisation directives.

 


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