IFC Invests in Lafayette Microfinance Bank to Expand Access to Finance for SMEs

IFC, a member of the World Bank Group, yesterday announced a loan facility of 400million Nigerian naira approximately $2.5 million, to Lafayette Microfinance Bank. The financing will support increased access to financial services for micro, small and medium enterprises, encouraging job creation, financial inclusion and economic growth.

La Fayette Microfinance Bank Ltd, also known as Advans Nigeria, is part of the Advans Network of Microfinance institutions.  The Naira loan will help finance the growth and expansion of Lafayette Microfinance in Nigeria, and help them offer credit and deposit services to more micro, small and medium enterprises in Nigeria.

“La Fayette Microfinance Bank seeks to offer simple yet effective financial services to MSMEs that have limited or no access to formal banking services” said Zine Otmani, managing director, La Fayette Microfinance Bank.

“Partnering with IFC will not only bring in much needed capital but will give us access to technical expertise that will help us achieve our goal of building a network of highly effective  microfinance institutions that help grow the nation’s economy”, he said.

Eme Essien Lore, country manager for IFC Nigeria said, “IFC is committed to improving financial inclusion and supporting growth in Nigeria. By providing finance in naira, IFC is helping to limit the foreign currency risk to La Fayette Microfinance Bank. The project will help create more jobs and improve the lives of Nigerians.”

Lafayette Microfinance Bank Nigeria was created in 2012 and started operating in Oyo state Nigeria in February 2013.

It currently has five branches in the state. Its mission is to provide adapted financial services to micro, small and medium enterprises, especially among the unbanked population in Nigeria.

IFC aims to promote financial sector diversification through specialized products, including trade finance, housing finance, insurance, and micro-, small- and medium-enterprise finance. Over the years, IFC has invested in excess of $10 billion in more than 60 local currencies around the world to help protect borrowing companies from currency risk by enabling them to borrow in the same currency in which they generate revenue.