AB MICROFINANCE BANK NIGERIA LTD OPENS THREE MORE BRANCHES AT KETU, APAPA AND ALABA.
Our commitment to growth speaks for us as we officially opened three more branches situated at 56 Ikosi road Ketu ,74 Mobil Road Ajegunle Apapa and 20/22 Igbede Road Ojo Alaba. The branches were opened February 9th and 18th, and July 15th 2011 respectively. This is as a result of our commitment to making loans easily accessible to our increasing clients.
Posted on 26 Jul 2011
AB MICROFINANCE BANK TURNS ONE, OFFICIALLY WELCOMES KfW
AB Microfinance Bank Nigeria, this month attained the age of one year. It was a time of joy and pride for the management and staff of the Bank. To celebrate the occasion, the Bank hosted its shareholders, staff and friends to a cocktail.
During the event, Bernd Zattler, Chairman of the Bank, thanked everyone present, especially the staff, who had made the day possible by their hard work and dedication. According to him, ‘In just one year, we have grown to well over 130 staff, and we are already opening our third branch.’ He indicated that there is a huge demand for microbanking in Nigeria due to the nation’s high population. ‘Our plan’, he said, ‘is to reach out to the lower income groups that really need our services.'
AB Microfinance Bank Benefits Over 1000 Businesses
AB Microfinance Bank, which began operations in November 2008, has disbursed loans worth over NGN 260 million (ca EUR 1,333,000) to over 1000 credit clients.
Michael Barleon, Managing Director of AB Microfinance Bank, welcomed this noteworthy development, and said that ‘It is one of our goals to empower businesses and entrepreneurs to participate in the financial development of their country by developing their own business.’
With over 2,500 clients, AB Microfinance Bank is one of the fastest growing banks in the country. According to Barleon, ‘This is a challenge for us to keep up with, and surpass, the expectations of our highly valued clients.’
AB Microfinance Bank Nigeria officially opens its Head Office and first branch in Ikeja, Lagos State
The microfinance industry in Nigeria is experiencing new standards since AB Microfinance Bank Nigeria opened its doors to the public on 10th November 2008 after several months of preparation.
Situated in Ikeja, Lagos State, AB Microfinance Bank Nigeria offers a broad range of financial services to micro, small and medium-sized enterprises (MSMEs) and other clients in the lower income strata. The Bank’s vision is to become the leading microfinance bank in Nigeria and to set new standards for the Nigerian banking industry in terms of professionalism, transparency and efficiency.
IFC Invests in AB Microfinance Bank to Increase Loans to Nigerian Small Businesses
IFC, a member of the World Bank Group, today announced that it will invest in AB Microfinance Bank Nigeria Ltd. to enable the microfinance institution to increase lending for microenterprises and low-income entrepreneurs in Nigeria, who currently have limited access to high quality and reliable financial services.
The five-year, 450 million Naira ($3.0 million equivalent) loan is IFC’s follow-up investment in AB Microfinance Bank, after IFC invested 150 million Naira to help launch the institution in October, 2008. It is also IFC’s first loan to the microfinance sector that is denominated in Nigerian Naira.
“The deepening partnership between IFC and AB Microfinance will enable us to continue to increase our support for entrepreneurs and small businesses in Nigeria,” said Michael Barleon, CEO at AB Microfinance Bank. “AB Microfinance Bank is committed to working with partners such as IFC to help create employment opportunities and improve the livelihoods of all Nigerians.”
The high rate of closure of micro-finance institutions, MFIs, has been attributed to lack of sound credit products which has hindered the MFBs from disbursing loans.
Speaking at the one year anniversary celebration of AB Microfinance Bank, the chairman, Dr. Bernd Zattler, pointed out that though there are many MFIs in Lagos, they are not working in the market segment where AB-MFB works “When you don’t have a good credit product to sell, it makes it difficult to grow a financial institution.
There are a lot of MFIs but as far as I understand, they work with completely different products and concepts, with many of them asking for voluntary savings but are very hesitant to grant loans.
“At AB-MFB, we grant loans on the basis of an analysis of the cash flow of the small enterprise and we do not require hard collateral, thereby giving us a very strong competitive advantage.
ADB stakes N133.712m in AB Microfinance Bank to ease lending
Basic lending and savings products to low income individuals and micro entrepreneurs in Nigeria are made easy as African Development Bank (AfDB) group approves an equity investment of N133.712million (764,782 euro) in AB Microfinance Bank of Nigeria (ABN). This equity investment, which is under the multi-purpose funding arrangement of AfDB, is 14.23 percent of the share capital of the AB Microfinance Bank of Nigeria .
Meanwhile, governments and businesses in five African countries namely Nigeria , Djibouti, Zambia , Mali and Malawi will benefit from a combined multi-purpose funding of N21.8billion ($187 million).
The approvals is also under the multi-purpose funding and it comprises four private sector financing with a combined value of N12billion ($102.6 million) to three countries and two public sector projects worth N8.6billion ($73.8 million) in two countries.
Going by a report that about 93.02 percent of microfinance banks (MFBs) so far audited by the Central Bank of Nigeria (CBN) is anything to go by, the low income earners meant to be served by these micro credit institutions will continue to have limited access to finance, and thereby putting at stake the objective of the scheme.
It has been reported that only six out of the 86 MFBs so far audited by the CBN are healthy. When contacted on phone, Olufemi Fabamwo, director, Other Financial Institutions Department, CBN, admitted that the regulatory body had actually started target examination of MFBs in Lagos , disclosing that the apex bank had audited 60 out of 200 operating in Lagos , but did not disclose the result.
Nigeria to receive $1m grant for microfinance – AfDB
$1m grant to establish the AB Micro Finance Bank of Nigeria.
Resident Representative of AfDB Country Office, Mr Herve Assan, told the News Agency of Nigeria on Wednesday in Abuja that the grant was in line with the bank‘s effort to empower the private sector.
He said, “The grant is in the tune of $1m which is quite sizeable for a micro finance bank.
“We have been involved in microfinance in the country for several years. We are still fine-tuning the new proposals.
Microfinance bank advocates improved access to services
Nigeria, Mr. Michael Barleon, on Wednesday advocated that improving access to financial services in the country would hasten the growth in the informal sector.
Barleon said in Lagos that in order to cushion the effect of the present financial insolvency, efforts should be geared towards enhancing the service to micro, small and medium-sized enterprises and other clients in the lower income strata.
Lagos, December 2009 – KfW has signed a Technical Assistance (TA) Agreement for a financial grant of 670,000 euros with AB Microfinance Bank Nigeria. KfW extended this funding in December 2009.
AfDB Approves $1 Million Technical Assistance Grant for Microfinance in Nigeria
The technical assistance contribution from FAPA, which makes up 7.7% of the overall TA package, will be used to co-finance the provision of technical assistance to ABN to build the capacity of the institution during its first few years of operation. Specifically, FAPA funds will pay to bring in long-term management staff as well as short-term experts for the implementation of new IT/MIS systems and staff training. FAPA funds will cover costs related to these experts for a three-year start-up phase, after which trained ABN staff will replace them.
One positive fallout of the bank consolidation exercise was the realization that he community bank concept had to be re-jigged to fit into the new realities thrown up by CBN’s far-reaching re-structuring of the financial system. A cursory assessment of the performance of the community banks showed clearly that they had terribly failed to live up to the expectations of the government, and indeed the people.
Microfinance Bank Advocate Improved Access To Services
The Managing Director of AB Microfinance Bank Nigeria, Mr. Michael Barleon, on Wednesday advocated that improving access to financial services in the country would hasten the growth in the informal sector.
Michael Barleon, managing director/CEO, AB Microfinance Bank Nigeria, has called for the consolidation of microfinance banks as a way of strengthening their operational efficiency and enhancing their service delivery.
AB Microfinance Bank Nigeria, located at 9 Oba Akran Avenue, Ikeja, Lagos, has opened its doors to the public to offer a broad range of financial services to micro, small and medium-sized enterprises and other clients in the lower income strata.
