Nigeria - LAPO Microfinance Bank Ltd.

The project provides medium-term funding to support LAPO Microfinance Bank (LAPO) to implement its 5-year business expansion plan. LAPO is an indigenous microfinance bank with a strong commitment to help the poor in Nigeria. It has extensive coverage in rural areas and more than 90% of its clients are female. The lack of medium-term local currency funding limits LAPO’s growth and product development. The proposed Naira facility will mitigate LAPO’s currency risk while enabling LAPO to increase its loan tenor and the coverage of unbanked individuals as well as micro and small enterprises. The proposed project complements existing PSOs in the financial sector as this project will focus on rural areas and poor households at the base of the pyramid. The proposed loan will be used solely for on-lending to LAPO’s clients (both individuals and MSMEs) and the loan agreement will govern the use of proceeds, disbursement triggers and other reporting requirements as well as environmental and social compliance.