E-Financial
LAPO Navigates Microfinance through COVID-19
By Edward P. Eze
Microfinance Institutions (MFIs) provide the best access to banking services for the majority of such underprivileged populations whose livelihoods have been worst affected by the pandemic’s disruptions to transportation, customer service, supply etc.
Because these populations generally save little and rely on daily basic income, they are now in greater need of sustainable credit and other pro-poor services that were already provided for them by microfinance institutions before the pandemic hit.
For a country like Nigeria experiencing mass poverty, steep unemployment and other serious socio-economic challenges, the implications are dire.
It means that millions of poor citizens amongst the 40 percent of the population will find it difficult to get back on their feet without the sort of services and support that MFIs provide. It goes without saying that the effectiveness of Nigeria’s MFIs will be critical to rebuilding the economy.
One of the major players in Nigeria’s Microfinance sector is LAPO Microfinance Bank which has an extensive network of branches across the country and accounts for over 27 percent of the Microfinance (MFB) sector.
LAPO MFB’s ubiquitous presence across the country as well as its pro-poor and solid corporate reputation established over nearly four decades have made it the country’s preeminent MFB.
In fact, due to its popularity many Nigerians in the lower socio-economic groups use ‘LAPO’ as a generic name for all microfinance banks, the same way “Omo” has become a synonym for detergents and “Bournvita” used to be for cocoa beverages.
LAPO MFB has approached the challenges of the pandemic with its trademark rigour and thoroughness.
It has made significant strides amidst the historic disruptions brought on by the pandemic whiche emerged in the country just over a year ago.
It has sustained its support to low-income earners, even recording a total disbursement of N12.2 billion as loans to 152,446 rural farmers and owners of Small and Medium Scale Enterprises (SMEs) in 2020.
Announcing these milestones recently, Dr Honestus Obadiora, LAPO’s Acting Executive Director, said the loans were disbursed in 253 branches across 21 states. “We were able to achieve this in spite of the pandemic and we are committed to sustaining this financial support through our development plan to open more branches and reach more clients,” Obadiora said.
The N12.2 billion disbursement represents a 12 percent increase compared to N10.9 billion disbursed in 2019 with portfolio at risk standing at 18.62 percent.
LAPO MFB has recorded other notable achievements during the pandemic including the launch in February, 2020 of its second bond, a N6 billion fixed rate bond which within five months was already oversubscribed by N200m.
However, even with such stellar achievements, LAPO like other MFIs is weathering significant challenges due to the pandemic.
A survey by the Consultative Group to Assist the Poor (CGAP), a global partnership of more than 30 leading development organizations that works to advance the lives of poor people through financial inclusion, shows that microfinance institutions (MFIs) are dealing with rising ‘bad debts,’ which now account for up to 30% of their total loans.
The survey, conducted with the SME Forum, also shows that there is now a higher rate of defaults in loan repayments because of widespread business failures and even outright closures due to the pandemic.
This is a major issue because most MFIs operate with little savings, expecting that small loans will be repaid in a timely fashion and with a low default rate. The fallout of increasing defaults due to the pandemic is that MFIs in turn face challenges repaying banks and their investors.
As a result, the network of trust that is so vital to MFIs is threatened as investors are becoming more cautious about which MFIs they lend money to.
However, reports say majority of MFIs remain reasonably sound financially and widespread bankruptcies are not expected at this time. In the case of LAPO, positive developments such as the enthusiastic response to the recent launch of its bond signal bright prospects for its long-term health.
It is also noteworthy that the pandemic disrupted business operations of many MFIs considerably.
Like its counterparts, LAPO has had to alter physical and onsite operations especially at the start of the pandemic.
The bank demonstrated commendable foresight by closing down its on-site operations across Nigeria on Wednesday, March 25, 2020, ahead of the Government’s lockdown directives for Lagos, Ogun and the Federal Capital Territory.
proactive measure to ensure the safety of customers and staff is in line with LAPO’s well-known reputation for championing public health through investment and public enlightenment.
Interestingly, in a seeming foreshadowing of the pandemic a few months before it began, LAPO played an active role in promoting hygiene through hand washing on World Hand-washing Day, October 15, 2019.
The organization donated items to schools to create awareness about the importance of hand-washing which would turn out to be essential in the fight against Covid-19.
While the pandemic persists, MFIs continue to face challenges meeting physically, communicating, and collecting loan repayments from their clients. International industry experts believe that now more than ever, the value of digital financial channels such as agent networks, e-wallets and mobile banking are vital because these technologies allow for continuity of service and spare customers the risk and inconvenience of travelling to branches as well as protect staff of the MFIs.
LAPO is in a good position to embrace such recommendations to further digitize operations because of its already existing culture of technological innovation.
For instance, in February 2020, LAPO announced plans to implement Oracle’s Flexcube, a budding automated banking software that already powers more than 10 percent of the world’s consumer bank accounts.
The preeminent microfinance bank appreciates that effective digitization must take into account the reality that majority of customers don’t have reliable access to technology.
This is a key component of the conscientiousness required as MFIs navigate the realities of the pandemic and continue to support the poorest segments of the population.
Finally, robust policy support by government is required to assist MFIs maintain asset quality so that they can continue to give out new loans to low-income households or MSMEs as an empowerment and poverty fighting measure.
It is therefore critical for policy makers to make necessary adjustment to extant laws and regulations to achieve this vital objective in order to stave off deepening inequality and poverty to give those at the bottom of the ladder a life line at this very challenging time for the local and global economies.
*Eze is a policy analyst based in Lagos.
First City Monument Bank (FCMB), one of Nigeria’s leading and most innovative customer-centric financial institutions, has announced a strategic partnership with Truecaller, the global platform for trusted communication, to transform the way it engages with customers across the country.
This collaboration is aimed at enhancing customer trust, reducing fraud, and ensuring that communication between FCMB and its customers is both safe, trusted, and seamless. With this partnership, FCMB will leverage Truecaller’s Customer Experience Solution and Branded Caller ID to ensure their customers receive transaction alerts, security notifications, and service updates with complete clarity and trust.
All FCMB calls will now display the bank’s verified name, logo, and brand details directly on customers’ mobile screens. This initiative reinforces FCMB’s strong commitment to digital safety, privacy, and customer trust. In today’s financial landscape, where impersonation and fraud are becoming increasingly sophisticated, Truecaller’s Customer Experience Solution is more than just a convenience — it is a vital safeguard for protecting customer relationships and enhancing confidence in every interaction.
In addition to smarter calling experience, FCMB has also activated its Business Page on the Truecaller app. This ensures that customers can independently discover, recognize, and engage with FCMB directly within the Truecaller app, reinforcing trust before the first point of contact is even made.
Together, these capabilities are helping FCMB strengthen its digital identity, reduce customer drop-offs, and improve the overall efficiency and credibility of its outbound communication efforts. Assured Authenticity: Customers can now instantly identify that calls from FCMB are genuine – reducing the risk of phishing or impersonation scams.
Enhanced Experience: Verified Business Caller ID brings clarity and eliminates uncertainty, particularly during critical communications such as security alerts or service updates.
Reinforced Trust: By adopting industry-leading communication capabilities, FCMB reaffirms its promise to protect customers with care, transparency, and innovation. Chief Information Officer at FCMB, Rotimi Famuwagun said: “At FCMB, our customers are at the heart of every innovation.
Through our partnership with Truecaller, we are strengthening communication security and fostering greater trust. When customers see the verified FCMB name along with our brand identity on incoming calls, they can be assured of transparency, authenticity, and care behind every interaction.’’
Priyam Bose, Global Head, GTM & Developer Products at Truecaller, shared: “At Truecaller, our goal is to help brands build meaningful, secure, and transparent communication at scale — especially in sectors like financial services where trust is everything.
“FCMB’s commitment to customer safety and trusted communication by embracing Truecaller Customer Experience Solution, FCMB is setting a new bar for what responsible, modern customer communication should look like — and we’re excited to support them on this journey.
Central Bank of Nigeria (CBN) has warned Nigerians, especially market women, against spraying, hawking and mutilating of the naira, the nation’s national currency.
Olayemi Cardoso, governor, CBN, who was represented by Mrs Hakama Sidi Ali, acting director, Corporate Communications Department, CBN, spoke at the Central Bank Fair, held in Kaduna on Thursday.
He said the Fair was designed as a platform to interact with members of the public on the policies of the CBN for sustainable economic growth and development of the country.
The Fair was themed “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development”.
The CBN boss said the theme was carefully chosen to address the links that catalyse Small and Medium Enterprises (SMEs) and other critical activities for the much-needed price stability.
“I urge everyone here to rely only on information disseminated through the verifiable official channels of the Central Bank of Nigeria. I also encourage you to respect and keep the naira clean. Do not spray, hawk, mutilate or counterfeit the naira. It is our critical national symbol.
“The core objective of this engagement, therefore, is to sensitise members of the public on how the Bank’s policies enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy.
“Our dedicated team is on hand to take us through presentations on different operations of the Bank, ranging from the recent innovations in the Nigerian payments system; microfinance sub-sector activities; developments in the foreign exchange market, protection of financial consumers and all you need to know about the naira.
“The Management of the Bank is committed to stimulating productivity and financial inclusiveness, as well as delivering on its core mandate of monetary and price stability.
“These efforts have already started yielding positive results, which include increases of inflows of foreign investments, positive trade balances and remarkable progress in financial inclusion.
“The CBN has spearheaded several key policies to strengthen the financial system which includes exchange rate unification; to minimise arbitrage opportunities and reduce volatility in the foreign exchange market and cleared over $7bn verified backlog of FX forwards.
“It also include Bank Recapitalisation; to strengthen the resilience and global competitiveness of the banking sector, positioning it to support the $1 trillion economy, launched the non-resident BVN to connect Nigerians abroad with home banking, unveiled the Nigeria Payments System Vision 2028 (PSV 2028); to accelerate digital transformation, deepen financial inclusion, and position Nigeria more strongly in global payments.
“To further protect banks’ customers and strengthen consumer confidence, the CBN launched the Unified Complaints Tracking System (UCTS) to streamline the management of consumer complaints against financial institutions. Alongside this, USSD code (*959#) was also introduced for verifying licensed institutions, and enhancing transparency in the Nigerian financial sector,” Governor Cardoso said.
Speaking earlier, Ahmad Dalhatu, Kaduna branch Controller of CBN, reaffirmed that the CBN Fair is one of the Bank’s major public enlightenment initiatives aimed at sensitising members of the public on the Bank’s policies, programmes, and interventions.
“It serves as a platform to deepen financial literacy, promote transparency, and strengthen trust between the Bank and the Nigerian people.
“Over the years, the Fair has evolved into a veritable channel for fostering two-way communication between the Central Bank and the Nigerian public. It enables us not only to explain our policies but also to listen to your concerns, feedback, and expectations. This year’s event continues in that tradition, and I encourage everyone here to actively participate in the discussions.
“As we navigate the evolving economic landscape—both globally and locally—the need for increased public awareness of monetary policy, financial inclusion, consumer protection, digital payments, and intervention programmes cannot be overemphasised. The CBN remains committed to ensuring a sound financial system and an inclusive economy where every Nigerian can thrive,” Dalhatu said.
Fidelity Bank has announced a three-month extension of its Get Alert in Millions (GAIM) Season 6 promo, now running until November 30, 2025, with total cash rewards increased from ₦159 million to ₦189 million.
L-R: Direct Sales Executive, Fidelity Bank Plc, Adegboyega Ademokunwa; GAIM 6 Eight Monthly draw Winner, Innocent Okoro Orji; Branch Leader, Fidelity Bank Plc, Gbagada, Chinwe Umez-Eronini; and Product Manager, Savings, Fidelity Bank Plc, at the GAIM 6 prize presentation ceremony held at Gbagada Building Materials market in Lagos recently.
This move follows strong customer demand for more participation time and has received full regulatory approval.
Originally launched in November 2024 for nine months, the GAIM 6 campaign was set to end in August 2025. However, based on customer feedback, the bank extended the promo to allow more Nigerians to benefit.
Recently, the bank celebrated 20 winners nationwide, each receiving ₦1 million through electronically supervised draws overseen by the Federal Competition and Consumer Protection Commission (FCCPC) to ensure fairness.
With over ₦30 million still up for grabs in upcoming monthly draws, the final prizes include ₦2 million for second runner-up, ₦5 million for first runner-up, and a ₦10 million grand prize. Recipients also gain access to financial advisory support at the Fidelity SME Hub to help maximize their rewards.
Fidelity Bank serves over 9.1 million customers through digital channels and 255 branches, earning various awards for innovation, digital transformation, and SME banking excellence.
The bank continues to promote savings culture and financial empowerment across Nigeria through initiatives like GAIM.
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