Microfinance banks are on a rapid increase rate in Nigeria due to their importance in reaching out to low-income earners. They provide banking services that would otherwise be inaccessible. As the business hub of the nation, a majority of microfinance banks are domiciled in Lagos. Read on to check out the complete list of microfinance banks in Lagos. Note that this list only includes licensed microfinance banks.
What are the benefits of microfinance banks in Lagos?
Some benefits of using a microfinance bank in Nigeria are:
Microfinance banks allow you to provide for your family through opportunities that may yield more income
It serves the unbankable in the society
Microfinance banks create jobs
It helps the country’s economy grow
The bank offers loan to the poor as well as a better repayment rate
How do I set up a microfinance bank in Lagos?
There are structural requirements that you should have before getting approval to start a microfinance bank in Lagos. These requirements vary depending on the focus region that your bank intends to cover.
The three categories available for microfinance banks in Nigeria are:
Unity microfinance bank (only one main office, and a paid capital of N20,000,000)
State microfinance banks (can have branches within a state and capital of N100,000,000)
National microfinance banks (allowed to have branches all over Nigeria and must have a capital of N2,000,000,000).
After sorting out your category, you would need to write an application to the governor of the Central Bank of Nigeria. Along with this list, you are required to submit the following:
Application fee of N50,000 for a unity mfb, N100,000 for state mfb, and N250,000 for national mfb
A capital deposit to your microfinance bank share capital escrow account with the Central Bank of Nigeria
Evidence that your capital was acquired through lawful means
Detailed feasibility report
A copy of the memorandum of association and articles of association
Capital importation certificate if your capital was imported
The details of your proposed board of directors
Your list of proposed shareholders along with their addresses and the name of their banker’s addresses
An intent letter which states that the bank’s subscribers are going to pay for their subscribed shares of your bank.
Lagos hosts the largest number of microfinance banks in Nigeria. You can always refer to the list above to know the one you have around. You can also read more about Microcred who rebranded to Baobab