Top 10 Microfinance Banks in Nigeria: Best Options for Loans, Savings, SME Capital
- Microfinance banks provide financial services, including loans to underserved Nigerians
- They offer loans, savings, and digital banking with fewer barriers than commercial banks
- These banks support small businesses and promote financial inclusion nationwide
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
Microfinance banks have continued to play a key role in expanding financial access across Nigeria, especially for low-income households, informal workers, and small business owners.
With services such as quick loans, mobile banking, and simplified account opening, these institutions are helping more Nigerians participate in the formal financial system.
This report highlights leading microfinance banks in the country and explains their impact on financial inclusion and economic growth.
Source: UGC
Understanding Microfinance Banking in Nigeria
A microfinance bank is a regulated financial institution designed to serve individuals and businesses that are often excluded from traditional banking systems.
In Nigeria, these banks focus on underserved groups such as artisans, traders, farmers, salary earners, and small business operators who may lack collateral or formal documentation required by commercial banks.
Unlike conventional lenders, microfinance institutions prioritise accessibility. They offer services including small loans, savings accounts, insurance, and money transfers, helping customers manage finances, grow businesses, and handle economic shocks.
While interest rates may be higher compared to traditional banks, the benefits often include faster processing times, flexible repayment plans, and reduced entry barriers.
Leading microfinance banks in Nigeria
1. LAPO Microfinance Bank
LAPO Microfinance Bank is one of Nigeria’s largest institutions focused on financial inclusion. Originating from the Lift Above Poverty Organisation, it provides microloans, savings, housing finance, and insurance products.
The bank primarily serves women and rural entrepreneurs, with about 90% of its clients being female. By 2023, it had disbursed over N1.4 trillion in microcredit nationwide and had received funding support from global development institutions.
2. Moniepoint Microfinance Bank
Moniepoint Microfinance Bank, a subsidiary of Moniepoint Inc., combines banking with fintech solutions to serve millions of Nigerians.
Its services include digital accounts, POS terminals, payment APIs, and working-capital loans. With a large network of agents and operations across all local government areas, the bank processes billions of dollars in monthly transactions, supporting small businesses and first-time borrowers.
3. AB Microfinance Bank Nigeria
Founded in 2008 and headquartered in Ikeja, Lagos, AB Microfinance Bank focuses on small and medium-sized enterprises.
It offers business loans, savings accounts, and digital banking through its myABflex platform, enabling customers to manage finances and build credit histories.
4. Groming Microfinance Bank
Based in Ibadan, Groming Microfinance Bank provides savings and credit products targeted at underserved individuals and SMEs.
Its loan offerings include SME loans of up to N5 million, alongside specialised accounts for salary earners and children.
5. Accion Microfinance Bank
Accion Microfinance Bank focuses on empowering micro-entrepreneurs through accessible lending and financial services.
Since commencing operations in 2007, it has built a reputation for supporting small businesses and promoting financial inclusion.
6. Assets Microfinance Bank
Assets Microfinance Bank provides loans, savings products, and digital banking services to individuals and small businesses.
It aims to improve access to finance for underserved communities while operating under regulatory supervision.
7. CIT Microfinance Bank
CIT Microfinance Bank offers loans, savings, and mobile banking services tailored to traders, artisans, and small enterprises.
Its flexible lending approach supports entrepreneurship within Nigeria’s informal economy.
8. Mutual Benefits Microfinance Bank
Part of the Mutual Benefits Group, this bank provides financial services, including microloans, group lending, and savings products, to grassroots customers.
It also integrates digital tools to simplify banking and loan repayment.
Source: Getty Images
9. VFD Microfinance Bank
VFD Microfinance Bank operates as a digital-first institution, offering services through its V Bank mobile app.
Customers can open accounts, transfer funds, and access loans online, with additional support through USSD channels. The bank has also invested in sectors like agriculture, education, and clean energy.
10. Mutual Trust Microfinance Bank Limited
Mutual Trust Microfinance Bank, headquartered in Abuja, is known for quick, collateral-free loans.
Its offerings include loans for civil servants, SME financing, and innovative products such as vehicle-backed credit and solar financing solutions.
New Microfinance Bank gets CBN's Approval to operate
Legite.ng earlier reported that a new bank, Teerus Microfinance Bank Limited, has received its operating licence from the Central Bank of Nigeria.
The bank said it would provide inclusive financial solutions to individuals, SMEs, and underserved communities.
Teerus MFB also disclosed plans to roll out digital-driven services in phases across Nigeria.
Source: Legit.ng
