Microfinance banks in Nigeria have renewed their call for greater support from the federal government and monetary authorities, saying increased intervention funds and more flexible regulations are essential to expanding financial inclusion and accelerating economic growth. The appeal was made by the newly elected President of the National Association of Microfinance Banks (NAMB), Dr. Adenrele Oni, during the association’s 16th Annual General Meeting held in Abuja, where industry stakeholders gathered to discuss the future of Nigeria’s microfinance sector.
Speaking on the sidelines of the event, themed “Beyond 20 Years: Engineering Sustainable Microfinance for the Next Generation,” Oni acknowledged the efforts of the Presidency, the Central Bank of Nigeria (CBN), and the Nigeria Deposit Insurance Corporation (NDIC) in supporting the industry through ongoing monetary reforms. However, he stressed that microfinance banks require additional intervention funds to provide affordable loans to businesses and individuals. According to him, easier access to funding would enable lenders to support entrepreneurs, empower low-income Nigerians, and contribute more significantly to national economic development.
Oni also appealed for a more business-friendly regulatory environment, noting that simplified regulations would make it easier for microfinance banks to operate efficiently and reach more underserved communities. He emphasized that stronger government backing would position the sector to deepen financial inclusion, reduce poverty, and provide much-needed financing for millions of micro, small, and medium-sized enterprises (MSMEs) across the country. He described microfinance institutions as vital partners in driving grassroots economic transformation and improving livelihoods.
Highlighting the industry’s remarkable growth, Oni revealed that the sector’s total balance sheet has expanded from less than ₦300 billion five years ago to over ₦6 trillion, reflecting rapid growth in operations and customer reach. He added that as of March 2026, the industry’s loan portfolio stood at ₦2.4 trillion, while total deposits had climbed to approximately ₦4.3 trillion. Despite facing challenging economic conditions over the years, he said the industry’s resilience demonstrates its growing importance in supporting government reforms, promoting financial inclusion, and stimulating economic activity nationwide.
Meanwhile, outgoing NAMB President, Alhaji Abubakar Ahmad, praised the continued collaboration between the association, the CBN, and the NDIC, noting that their regulatory guidance has strengthened the stability and sustainability of Nigeria’s microfinance banking industry. He also highlighted achievements recorded during his tenure, including strategic partnerships with development organizations focused on capacity building and sector development. Looking ahead, Ahmad urged stakeholders to embrace stronger corporate governance, digital transformation, improved risk management, increased capitalization, and industry unity to ensure the microfinance sector remains a key driver of Nigeria’s economic growth and financial inclusion agenda.
source: Leadership
