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.
E-Financial
SEC Working on Stablecoin Regulation Framework

Securities and Exchange Commission (SEC) is working with developers to establish a regulatory framework for stablecoins, according to Dr. Emomotimi Agama, director-general, SEC.
Agama made this announcement during his keynote speech at the 2025 Decentralized Finance (DeFi) Conference.
Agama said the SEC’s commitment is to foster a responsible decentralized finance environment.
“The commission believes responsible DeFi can thrive in a regulated environment,” he said, highlighting the SEC’s efforts to enhance investor education through its “Crypto Smart, Nigeria Strong” initiative.
The program aims to educate young investors across schools, universities, and social media on blockchain basics, scam detection, and long-term investing benefits.
The SEC is also focusing on regulatory evolution, with plans to streamline its licensing regime.
“We are enhancing our licensing architecture to make it more efficient, more transparent, and more risk-based,” Agama noted.
The commission is exploring a framework for naira-pegged stablecoins, backed by verifiable reserves and audited by independent custodians, to facilitate cross-border trade and programmable finance.
It is also reviewing pathways for digital asset Exchange Traded Funds (ETFs), custodial wallets for pension funds, and tokenized securities for institutional investors.
E-Financial
CBN Issues Transitional Guidance, Says Banks are Healthy

Central Bank of Nigeria (CBN) has introduced time-bound measures for a small number of banks still completing their transition from the temporary regulatory support provided.
The CBN stated yesterday that this step is a response to the economic impact of the COVID-19 pandemic.
This step, the CBN said, is part of its broader, sequenced strategy to implement the recapitalisation programme announced in 2023.
CBN disclosed that the programme, which aligns with Nigeria’s long-term growth ambitions, has already led to significant capital inflows and balance sheet strengthening across the sector.
It said most banks have either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026.
It added that the measures announced apply only to a limited number of banks saying that these include temporary restrictions on capital distributions, such as dividends and bonuses, to support the retention of internally generated funds and bolster capital adequacy.
A statement by Mrs Hakama Sidi Ali, acting director, Corporate Communication of the apex bank, explained that all the affected banks have been formally notified and remain under close supervisory engagement.
“To support a smooth transition, the CBN has allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms. Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums.
“These adjustments reflect a well-established supervisory process consistent with global norms. Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts,” the bank stated.
It further added that it remains fully committed to continuous engagement with stakeholders throughout this period via the Bankers’ Committee, the Body of Bank CEOs, and other industry forums.
The goal is to ensure a transparent, predictable, and collaborative regulatory environment.
It assured that Nigeria’s banking sector remains fundamentally strong, explaining that the new measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway.
E-Financial
Loan Defaulters Risk Denial of Passport Renewal, Others- CREDICORP

Uzoma Nwagba, managing director, Nigeria Consumer Credit Corporation (CREDICORP), has announced that failure to repay loans may soon affect citizens’ access to essential services such as passport renewal, driver’s licence issuance, and even renting a home.
Nwagba disclosed this on Tuesday during a ‘Meet the Press’ session organised by the Presidential Media Team at the State House in Abuja.
According to the CREDICORP boss, the Federal Government was working to link individual credit scores directly to the National Identification Number (NIN), as part of efforts to build a centralised and reliable credit system across the country.
He said all loan providers, whether commercial banks, FinTechs, or microfinance institutions, will be mandated to report loan performance, ensuring every Nigerian has an accurate and traceable credit score.
“Maybe you want to renew your passport, but if something shows that you owe money somewhere, you may not be able to proceed,” he said.
“The same applies to renewing your driver’s license or renting a house. There is no hiding place.”
He clarified that the new policy will not be predatory but will impose subtle and structured consequences on defaulters.
“Whether your money is in a commercial bank, FinTech, or microfinance institution, loans taken and not repaid will be tracked and recoverable,” he added.
Nwagba explained that the goal was to ensure that every Nigerian is scored, using a structural algorithm that considers both financial and non-financial data.
CREDICORP’s mandate, he said, includes improving quality of life, reducing corruption driven by financial desperation, and strengthening local industries by enabling Nigerians to access consumer credit to buy locally made goods.
“The President has made it clear that improving lives is a top priority. If people can access credit responsibly, it reduces the pressure that pushes them into corruption or financial missteps. At the same time, it drives demand for Nigerian products and helps create jobs,” he stated.
The CREDICORP boss also revealed plans to roll out a nationwide consumer credit programme targeting 400,000 young Nigerians, beginning with National Youth Service Corps (NYSC) members under the YouthCred scheme.
According to him, the programme’s systems and platforms are fully set up, for imminent official launch.
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