The Central Bank of Nigeria has officially licensed Preferred Finance Company Limited to operate as a finance company, tasking it with expanding access to structured financing solutions for micro, small, and medium-scale enterprises across the country.
The company’s grand opening was held in Abuja on Tuesday, where its leadership highlighted a commitment to improving financial inclusion, particularly for underserved businesses. The firm is majority-owned by members of Guarantee Multipurpose Cooperative Society Limited, who hold a 70 percent stake.
Speaking at the event, the Managing Director and Chief Executive Officer described the licence as a major step forward, noting that Preferred Finance is driven by a vision of inclusive development. The firm received its final approval from the Central Bank on December 16, 2024, the same day as the MD’s birthday, marking a symbolic moment in the company’s journey from cooperative to regulated financial institution.
Preferred Finance has been authorised to offer a range of financial services, including funds management, financial advisory, structured finance, and multiple loan products—such as personal, education, contract, asset, LPO, payday, and MSME loans.
Beyond its commercial offerings, the company has already embarked on community impact initiatives, including installing surveillance systems for an orphanage in Abuja and covering the school fees of 25 underprivileged students.
The company’s leadership said Preferred Finance is built on the values of trust, community, and innovation. They aim to combine over a decade of experience from their cooperative roots with a tech-driven, customer-centric approach to reach more Nigerian businesses and households.
The Chairman of the Board traced the journey back to 2012 with the founding of the cooperative society, stressing that the move to formal finance services was driven by the need to expand their impact and reach. He praised the Central Bank for its regulatory support, which he described as crucial to achieving the milestone.
With over 10,000 members and a solid operational base, Preferred Finance plans to use disciplined investment strategies and digital tools to deepen its support for Nigeria’s growing MSME sector.
