E-Financial
LAPO MFB: A commendable Half Year despite the Pandemic
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.
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.
Securities and Exchange Commission (SEC) has warned the public against investing in unregistered investment schemes, including Silverkuun Investment Cooperative Society/Silverkuun Limited.
In a circular issued in Abuja, yesterday, the commission said its attention had been drawn to the activities of these entities, which falsely present themselves as investment advisers and fund managers in the Nigerian capital market.
“The attention of the Securities and Exchange Commission has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an Investment Adviser/Fund Manager.
“The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Limited is not registered to operate in any capacity in the Nigerian Capital Market.”
SEC advised the public to refrain from engaging with Silverkuun Investment Cooperative Society/Silverkuun Limited or its representatives in respect of any business in the Nigerian capital market.
“The Commission uses this medium to reiterate that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to financial risk including fraud and potential loss of investment.
“The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s portal before transacting with them,” the SEC added.
Dr. Emomotimi Agama, director-general of the SEC, recently warned that the Commission would not hesitate to shut down the operations of such unregistered entities while also ensuring that the promoters are made to face the full weight of the law.
Agama said, “we will shut down their operations and the promoters will be made to face the full weight of the law.
“In a major reform, ISA 2025 officially brings digital assets under the SEC’s regulatory purview, defining them as securities and mandating registration for all virtual asset service providers (VASPs) and digital asset exchanges. This development aims to close the regulatory vacuum that has allowed many Ponzi-style platforms to thrive under the guise of cryptocurrency and digital finance.”
Agama also emphasized the Commission’s education-focused strategy to combat fraud through podcasts, digital campaigns, and the introduction of capital market literacy in schools and universities, the SEC aims to equip Nigerians with the knowledge to detect and avoid dubious investments.
Africa’s cross-border payments market is on track to hit $1 trillion by 2035, according to a new report by venture capital firm Oui Capital. Titled “Africa’s Cross-Border Payment Landscape—a deep dive into the systems, players, and shifts shaping Africa’s cross-border payment flows,” the report states that the market is currently valued at $329 billion and growing at a compound annual growth rate of 12%.
It identifies Africa’s booming digital adoption, increasing intra-African trade, and a surge in mobile money usage as the key growth drivers.
Despite the impressive growth, the report highlights systemic inefficiencies.
“Legacy rails, double currency conversions, and fragmented regulations still siphon billions in hidden costs,” Oui Capital states, noting that the continent continues to have the highest global remittance costs, averaging 7–8%.
However, digital innovation is helping reshape the landscape. Mobile money is now a key channel, with 30% of Sub-Saharan remittances flowing through mobile wallets.
In 2022, Africa accounted for 66% of global mobile money transaction value, demonstrating the rapid formalisation of what was once a predominantly informal cash ecosystem.
Oui Capital sees significant investment potential in addressing these inefficiencies. “Infrastructure plays—interoperable API layers, decentralised FX liquidity pools, and PAPSS integrations—represent $10 billion-plus opportunities,” the report says.
The Pan-African Payment and Settlement System is one such initiative pushing for local currency settlements and reduced reliance on USD/EUR clearing, which presently adds around $5 billion in annual costs.
According to the report, cryptocurrencies and Stablecoins are emerging as promising alternatives, cutting remittance costs by up to 60% in markets with clear regulations.
“Fintech APIs are already pushing fees as low as 1.5–3%,” the report notes.
Still, the venture capital firm warns that challenges persist as only 55% of African jurisdictions allow full electronic KYC, limiting the scalability of fintech solutions.
The report urges founders to go beyond peer-to-peer transfers by embedding services like lending and insurance.
“Africa’s payments race is now a scale game. Those that solve for liquidity, compliance and cost will define the continent’s digital trade backbone over the next decade,” it concludes.
Chartered Institute of Bankers of Nigeria has expanded its Agency Banking Certification Programme through a tripartite collaboration between the Institute, FIC, and SANEF Limited.
This partnership according Prof. Pius Deji Olanrewaju, President/Chairman of Council the Chartered Institute of Bankers of Nigeria, CIBN, is timely and strategic, “as we aim to broaden the reach of the certification across Nigeria’s agent banking sector. With SANEF’s deep integration in the financial inclusion ecosystem and established relationships with leading super agents, we are confident that this collaboration will strengthen the quality and visibility of the programme.
“The goal is clear, to enhance professionalism among agent bankers, support the national financial inclusion strategy, and contribute to building trust and integrity within this growing segment of the financial services sector. This collaboration presents an excellent opportunity for further implementation of the competency framework for the banking industry in Nigeria”.
He noted that the collaboration among others is part of his LEGACY agenda which highlights the multifaceted role of financial institutions in shaping Nigeria’s economic future.
The letter C in the LEGACY agenda refers to Competence in the banking and Finance industry, which is a very crucial factor in the banking and finance sector. Competent individuals in this industry are equipped with the necessary knowledge and skills to effectively manage financial resources. Individuals with expertise in this field can contribute to the growth and stability of the economy.
Mrs. Uche Uzoebo, Managing Director/Chief Executive Officer, Shared Agency Network Expansion Facilities, SANEF, described the memorandum of Understanding, MoU, as a visionary partnership that seeks to expand Financial Inclusion through Agent banking training, Financial Literacy and knowledge impartation, an objective that forms a key pivot of what SANEF represents.
“Over the years, SANEF, in strong collaboration with our key stakeholders, Banks and Licenced Super-Agents/Mobile Money Operators and other Financial Service Providers, have continued to deepen the frontiers of Financial Inclusion and agent bank. Financial Literacy and training have remained a key part of this objective.
“This MOU ceremony is a fulfillment of a shared vision through the expansion of Agent Banking, Financial Literacy, capacity building, thought leadership, training and competency.
She further explained that the agreement provides a training structure with well-curated and knowledge filled training modules and materials that will deepen the knowledge and capacity in agent banking.
“It will go ahead to deepen and expand the knowledge and capacity of all participants that will take part in this training and we believe that with the quality and cooperation of all parties present, this very important objective of impartation of knowledge and thought leadership, grooming and training minds to be empowered and learned and contributing our quota to nation building and be a better place,” she added.
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