Business
3,000 Beneficiaries Receive AB Microfinance Credit Facilities
As part of effort to empower lives, AB Microfinance Bank has extended several credit facilities to 3,00 beneficiaries in Lagos, Nigeria.
Mrs. Corinna Hever, Head, Banking Services of the firm who disclosed this to journalists at the one year anniversary of the bank in Ikeja recently said, through the credit facilities a lot of Nigerians have been empowered.
This, she stated has created employers of casour, thereby eradicating poverty as a result of job creation.
She said that, the beneficiaries are artisans, market men and women, small scale business owners, among others who have shown that they are worthy to be credited individuals.
She said, that the beneficiaries accessed credit facilities ranging from N5,000 naira to N1 million to either start a new business or sustain the existing ones.
On repayment rate, she noted that some customers are now paying hack, while new ones are being granted credit facilities. The bank officer hinted that within the one year of operation of the firm, it has a deposit base of 2,500 and 3,000 loan beneficiaries. To her, no collateral is required to apply for loans, while loan seeker needs not to open an account before accessing loan facilities. Hener said that business plan of an individual, as well as guarantors are the only collaterals required from the would-be beneficiary.
She added that customers can access financial or social assistance from three branches of the firm in Lagos State.
Advising the active poor to always use the loans for the purpose it’s meant for, adding that this is the only way their lives could change fir better.
Speaking earlier, Mr. Micheal Barleon, managing director said his bank will continue to offer finance services to micro, small and medium – sized enterprise (MSMEs) in the lower income strata of the country.
He stated that, there is need for the poor to survive, the bank would be ready to offer them uncollateralised credit facilities.
He said the bank believes in the development of the micro businesses, in order to reduce the poverty rate, while in the same vein, creates employment opportunities that will fast frack economic growth and development.
The bank boss stressed that his firm has different credit products that will take care of the financially hand- capped but active poor, adding that, Nigerians have a lot to benefit from the service of the bank.
According to him, “we choose Nigeria as a destination because the country is a good place to do business especially Lagos, considering the kind of business opportunities therein.”
Reacting further, he believes microfinance is a tool that could help the low income people and society grow in leaps and bounds.
Though there is competition in the microfinance industry, he emphasised that AB MFB has good credit products that will take care of the yearnings and aspirations of the people.
While comparing Nigeria with other countries where the bank has branch, he indicated that there is a huge demand for microfinance service here more than in other countries because of the huge population.
This, he noted informed the decision of the bank to give out loans and qualitative products that meet the demands of the market. Our plan is to reach out to the lower income groups that really need our service, he said, stressing that the microfinance clients, must have the capacity to repay before granting them loans.
Barleon disclosed that the capital base of the bank is around 500 million euro, promising that the firm would continue to grow at the rate of 100 per cent per year.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
