Microfinance banks play a crucial role in providing financial services to individuals and small businesses, especially those who are underserved by traditional banks. In Nigeria, there are numerous microfinance banks that have made a significant impact in empowering low-income households and promoting economic growth. In this article, we will explore the top 15 best microfinance banks in Nigeria, their founding years, and whether they are approved by the Central Bank of Nigeria (CBN) or not.
List of the Top 15 Best Microfinance Banks in Nigeria (2023)
The list and needed information regarding the top 15 best microfinance banks in Nigeria can be found below:
LAPO Microfinance Banke was founded in the 1980s during the era of the Structural Adjustment Programme, LAPO Microfinance Bank primarily aimed to assist less-privileged Nigerians in coping with economic challenges.
Over the years, it has become one of Nigeria’s most reputable microfinance banks.
LAPO Microfinance Bank is committed to providing sustainable financial services to low-income households.
It was rated and still remains one of the best microfinance banks in Nigeria in 2022.
It is also known as a CBN approved microfinance financial company.
ACCION Microfinance Bank Limited
ACCION microfinance bank limited is also one of the top 15 best microfinance banks in Nigeria in 2023.
This CBN approved financial institution was established in the year 2006 and commenced operations in 2007 with the objective of empowering micro, small, and medium-scale enterprises (MSMSEs) as well as low-income earners.
The bank offers sustainable, ethical, and profitable financial services, including loans for small businesses, homeownership, education, and more. ACCION Microfinance Bank provides quick loans of up to N150,000 through mobile banking or USSD channels.
Grooming Microfinance Bank
Grooming Microfinance Bank was established in 2009 and has grown to become a reputable microfinance institution in Nigeria.
The bank provides microcredit loans, savings accounts, and financial advisory services to individuals and small businesses.
Grooming Microfinance Bank is committed to promoting financial inclusion and empowering entrepreneurs, it is also known as a CBN approved finance company.
Mutual Trust Microfinance Bank
Mutual Trust Microfinance Bank, formerly known as Mark de Rock Microfinance Ltd, a CBN approved financial institution rebranded itself in the month of April 2016.
The bank aims to redefine microfinance services in Nigeria through the use of cutting-edge technology and highly experienced staff.
Loan applications with Mutual Trust Microfinance Bank are processed within 10 hours after screening, and the bank offers flexible repayment plans to individual borrowers and businesses.
AB Microfinance Bank
AB Microfinance Bank is yet one of the top 15 best microfinance banks in Nigeria so far.
This AB Microfinance Bank was established in 2008.
It is known as a socially responsible bank that caters to micro and small enterprises. The bank provides micro-loans, SME loans, housing loans, savings accounts, current accounts, fixed deposit accounts, and mobile banking services.
It is also a bank licensed and approved by CBN.
Accolade Microfinance Bank
Accolade Microfinance Bank is a licensed and CBN approved bank, the establishment day dated back to the year 2007, and has been providing financial services to individuals and microenterprises in the country.
The bank offers microloans, savings accounts, and money transfer services. Accolade Microfinance Bank focuses on building strong relationships with its customers and providing them with personalized financial solutions.
KUDA Microfinance Bank
KUDA can also be found amongst the list of top 15 best microfinance banks in Nigeria today, this bank was formerly known as Kudimoney, it has gained popularity by leveraging financial technologies to redefine microfinance services in Nigeria.
With over $90 million in funding, KUDA Bank has millions of users who have downloaded its apps.
The bank offers online-only savings and digital lending services and aims to provide seamless banking experiences to individuals and small businesses.
This bank is also licensed under the watch of the central bank of Nigeria (CBN).
BoI Microfinance Bank
BoI Microfinance Bank is a subsidiary of the Bank of Industry (BoI), a Nigerian government-owned development bank. The parent bank, BoI, was primarily established to provide financial assistance for various business projects.
BoI Microfinance Bank caters to SMEs and low-income earners, providing loans and savings deposit services.
The bank’s primary commitment is to promote entrepreneurship through the provision of easy loans. Approved by CBN.
Mainstreet Microfinance Bank
Mainstreet Microfinance Bank, founded in 2009, is committed to providing financial services to individuals and micro, small, and medium-sized enterprises (MSMEs). The bank offers microloans, savings accounts, money transfer services, and financial advisory services.
Mainstreet Microfinance Bank aims to contribute to economic growth by supporting the development of MSMEs. Approved by CBN.
Assets Microfinance Bank
Assets Microfinance Bank was said to be established by the central bank of Nigeria and definitely, a CBN approved finance company.
Assets Microfinance Bank is known for its focus on providing personal, business, and payday loan services.
The bank also offers savings and investment services, with unique products designed to empower businesses.
Page Microfinance Bank
Page is a microfinance bank approved by CBN and one of the top 15 best microfinance banks in Nigeria today.
Page Microfinance Bank is a reputable microfinance bank in Nigeria that offers a wide range of financial services and was established in 2009.
The bank provides microloans, savings accounts, fixed deposit accounts, and trade finance solutions to individuals and small businesses.
Page Microfinance Bank is dedicated to promoting financial inclusion and empowering its customers in the country.
Fina Trust Microfinance Bank
Fina Trust Microfinance Bank is a CBN licensed bank founded in the year 2009.
Fina Trust Microfinance Bank is affiliated with the LOLC Group, the largest non-banking corporate entity in Sri Lanka. The bank offers a wide range of financial services, including quick loans, salary advances, SME loans, education loans, financial asset financing, savings accounts, current accounts, and fixed deposit accounts.
Fortis Microfinance Bank
Fortis Microfinance Bank is a leading microfinance institution in Nigeria that was established in 2007.
The bank focuses on providing financial services to low-income individuals and microenterprises.
Fortis Microfinance Bank offers microloans, savings accounts, and money transfer services.
The bank is committed to promoting, encompassing and empowering its customers.
It wasn’t left out of the list of CBN approved microfinance banks in Nigeria.
Sparkle Microfinance Bank
Established in 2019 by Uzoma Dozie, the former Managing Director of the now-defunct Diamond Bank, Sparkle Microfinance Bank focuses on leveraging technology to provide seamless financial services through its mobile app.
The bank aims to enhance access to financial services for individuals and small businesses.
It is also approved by the central bank of Nigeria (CBN) and is not excluded from the list of the top 15 best microfinance banks in Nigeria in 2023.
Addosser Microfinance Bank
Addosser Microfinance Bank was founded in 2008 with a mission to provide financial services to micro, small, and medium-sized enterprises (MSMEs) in Nigeria. It is a CBN approved financial institution.
The bank offers a range of products and services, including loans, savings accounts, fixed deposit accounts, and trade finance solutions.
FAQs On Top 15 Best Microfinance Banks In Nigeria (2023)
Below are answers to some frequently asked questions on the list of the top 15 best microfinance banks in Nigeria in 2023:
What are the best microfinance banks in Nigeria?
The following microfinance banks were recognized for their good reputation and performance in Nigeria:
- Accion Microfinance Bank
- LAPO Microfinance Bank
- AB Microfinance Bank Nigeria
- Fortis Microfinance Bank
- Grooming Microfinance Bank
- Addosser Microfinance Bank
- Seedvest Microfinance Bank
- Fina Trust Microfinance Bank
- Hasal Microfinance Bank
- Infinity Microfinance Bank
How can I choose the best microfinance bank for my needs?
When choosing a microfinance bank in Nigeria, you may consider the following factors:
Reputation and credibility: Look for banks with a good reputation and track record in the industry.
Interest rates: Compare interest rates offered by different microfinance banks and choose the one that suits your financial goals.
Services offered: Evaluate the range of financial services provided by the bank and ensure they align with your needs, such as loans, savings accounts, and insurance.
Branch network: Consider the availability of branches and ATM networks to ensure convenience in accessing your funds.
Customer reviews and feedback: Read reviews and feedback from existing customers to gauge their satisfaction with the services provided by the microfinance bank.
Are microfinance banks in Nigeria regulated?
Yes and for sure, microfinance banks in Nigeria are regulated by the Central Bank of Nigeria (CBN).
The CBN sets regulations, guidelines, and supervisory frameworks to ensure the stability and soundness of the microfinance sector.
What is the role of microfinance banks in poverty alleviation?
Microfinance banks play a crucial role in poverty alleviation by providing financial services to low-income individuals and small businesses.
They empower people to start or expand their businesses, save money, and build assets.
Access to microfinance enables entrepreneurship, generates income, and contributes to economic development at the grassroots level.