Accion Microfinance Bank has announced plans to provide approximately ₦60 billion in loans to micro, small, and medium-scale enterprises (MSMEs) across Nigeria in 2025. This ambitious goal was revealed by the bank’s Managing Director/CEO, Taiwo Joda, during the bank’s annual Financial Inclusion Seminar (FIS), themed “Digital Lending: A Path to Financial Inclusion or a Barrier for the Informal Sector?”
Loan Performance and Future Goals
2024 Performance: Accion MFB has disbursed an average of ₦3 billion monthly, totaling ₦33 billion this year. Over the past decade, the bank has extended approximately ₦250 billion in loans to MSMEs, with an average loan size of ₦700,000.
2025 Target: The bank aims to double its loan offerings to ₦60 billion, leveraging digital platforms to reach more customers.
Key Expansion Plans
Branch Network: New locations planned in Kwara, Abuja, Kano, and Kaduna States to increase accessibility.
Customer Base Growth: Aiming for a 20% monthly increase in new customers.
Digital Transformation: Collaborations with e-commerce platforms and strategies targeting younger demographics, including Gen Z.
Accion MFB has embraced digitization to revolutionize its lending process:
The success of Digital Products: A recently digitized product recorded a 1,000% increase in uptake within 10 weeks, compared to its performance over three years.
Customer-Centric Design: Digital solutions are designed to meet customers where they are, ensuring ease of use and accessibility.
Chief Digital Officer, Paul Ehiagbonare, highlighted the transformative power of digitisation, stating:
“We digitised a product, and it achieved results that underscored the importance of effective digital transformation. For us, it is about accessibility and putting the customer at the center.”
While digital lending has expanded opportunities, issues like trust and digital literacy remain significant barriers, especially for individuals at the bottom of the economic pyramid. Joda emphasized the importance of collaboration and education:
“From feedback, we need stronger collaboration with expected users on digital literacy. We plan to host monthly virtual meetings to educate customers on trends, threats, and protection strategies.”
Accion MFB maintains single-digit non-performing loans (NPLs), a significant achievement in Nigeria’s challenging economic environment. Joda noted:
“Defaults are mostly due to economic challenges, not character. Less than 3% of defaults stem from deliberate non-repayment.”
With its proven track record and commitment to digital innovation, Accion MFB is positioned to empower more MSMEs, which form the backbone of Nigeria’s economy. The bank’s dual focus on growth and financial inclusion ensures a broader impact in addressing cash flow challenges and boosting economic resilience.
