LAPO Microfinance Bank to Support 10,000 Businesses
The Development Bank of Nigeria has entered into a partnership with LAPO Microfinance Bank to support 10,000 businesses in the Micro, Small and Medium Enterprises sector with low-interest loans.
A statement from the DBN said the loan is part of measures aimed at addressing the financing challenges facing MSMEs in Nigeria.
The statement quoted the Managing Director, DBN, Mr Tony Okpanachi, to have said that the bank was committed to making funds available to MSMEs at low-interest rate.
This, he said, is based on the conviction that access to finance to MSMEs was vital to increasing their contributions to Gross Domestic Product.
He recalled that LAPO MFB is among the first three banks that DBN commenced its on-lending activities in October last year.
He said the release of the fund is in line with the decision of the bank to fulfill its three mandates of lending to MSMEs, provision of partial guarantees to financial institutions and capacity building.
He said, “This is a milestone achievement and I am particularly happy that we are getting a lot of traction on our lending activities with LAPO.
“The collaboration is encouraging because they were among the first three Microfinance Banks we commenced our initial pilot lending with in November 2017.
“I must commend the management team for keying into our business model and I strongly believe we can work together to alleviate the financial constraints faced by MSMEs.”
The Managing Director, LAPO MFB, Mr Godwin Ehigiamusoe said the disbursement of the loan would catalyse activities of entrepreneurs in that segment of the economy.
He said, “We strongly believe in the capacity and potentials of the MSMEs in alleviating poverty and creating jobs for our growing population.
“We are happy with the partnership and we will continue to work with DBN to ensure that collectively, we are able provide the much-needed funding that the MSMEs require to flourish.”