Baobab Microfinance loans hit N4.7billion

•Targets 30,000 customer base
A micro lender, Baobab Microfinance Bank Nigeria, formerly Microcred Nigeria, has grown its loan book from a moderate value N257 million as at 2010, to N4.7 billion in 2018, with loan performance rated above average.

With customer base in excess of 87,000, after 10 years of operations in the country, the bank’s capital base has risen to N2.9 billion.
The Managing Director of the bank, Dr. Kazeem Olanrewaju, who made the disclosure at the 2019 Customers’ Forum, said the lender’s prudential and fast-paced loan disbursement has endeared the institution to customers, who now call others to become clients too.

Olanrewaju said the essence of the Customers’ Forum, which has become an integral part of the bank, was to get feedback from clients, create network opportunities among them and show gratitude to customers for loyalty.

He disclosed that with the N2.9 billion capital base, about three commercial banks have indicated interest to make up the balance of N2.1 billion to become compliant with the new capital base requirement of N5billion.
He however said the lender is considering the option of Rights Issue or profits ahead of the deadline by April 2020.

Explaining the bank’s financial performance in 2018, he said deposits rose from N1.2 billion in 2017, to N2billion in 2018, while disbursement to customers reached N14 billion, although there was a target of N20 billion.

For 2019, he said the bank is targeting N28 billion worth of disbursement and customer base of 30,000, and has already increased its staff strength about 520 for this purpose.

He expressed confidence in management’s ability to lend to viable businesses, adding that one of its financiers – a member of the World Bank Group, and proposed partnership with the Central Bank of Nigeria (CBN), will raise about $500 million facility for the bank this year.

Also speaking on the risk management level of the Microfinance bank, he said that all their loans are insured, while putting measures in place to be the first digitalised Microfinance bank in Nigeria, in a move to ensure seamless services.