Baobab Nigeria disburses N500bn loans to MSMEs

Baobab Nigeria, a microfinance bank, said it has disbursed close to N500bn in loans to micro, small, and medium-sized enterprises, reinforcing its commitment to financial inclusion and business growth in Nigeria.

The disclosure was made in a statement on Friday, in which the lender highlighted its efforts to support small businesses through accessible financial solutions.

The bank said it has successfully served nearly 300,000 clients, helping entrepreneurs expand their operations.

“With close to N500bn disbursed in loans to micro, small, and medium-sized businesses since its inception, Baobab Nigeria has consistently played a pivotal role in fostering financial inclusion and business expansion,” the company said.

It added that these efforts align with Baobab’s mission to provide accessible financial services to underserved African communities.

Speaking at an event in Lagos, the Group Chief Executive Officer of Baobab Group, Philip Sigwart, reaffirmed the company’s commitment to supporting microenterprises and small businesses through impactful financial services.

“At Baobab, we recognise that small businesses are the backbone of the Nigerian economy. We are committed to building a sustainable and inclusive financial ecosystem that empowers entrepreneurs.

“By continuously innovating and expanding our services, we reinforce our mission to provide accessible financial solutions that fuel growth and economic development in Nigeria and across Africa,” he said.

Baobab has built a robust financial structure to sustain its growth trajectory. As of December 2024, the bank’s gross loan portfolio stood at N60bn, reflecting strong demand for its financial products, while its balance sheet size reached N80bn.

The CEO of Baobab Nigeria, Eric Ntumba, said the bank’s growth remains sustainable, backed by strong financial metrics.

“Our growth is quite sustainable because when we look at our quality metrics, we have managed to keep a very low portfolio at risk while almost doubling our loan portfolio in just one year.

“At Baobab, we are also focused on the three Ps: Planet, People, and Profit. These principles drive us to ensure we provide balanced services to the various communities we serve,” he said.

Baobab further seeks to deepen financial inclusion in Nigeria by providing best-in-class financial services to underserved and unbanked populations at the grassroots level.

The Board Chairman of Baobab Nigeria, Rotimi Oyekanmi, reaffirmed the bank’s commitment to expanding financial access across the country.

“Our commitment to promoting financial inclusion in Nigeria remains at the core of our mission,” Oyekanmi said. “We aim to bridge gaps in the financial industry by expanding opportunities to underserved states and regions lacking access to essential financial services.

“In the coming years, one of our key objectives is to extend our reach across all 36 states in Nigeria, with a clear focus on financial deserts.”