Nigeria’s microfinance banking industry has recorded significant growth over the past five years, with its total balance sheet rising from less than N300 billion to more than N6 trillion.
The President of the National Association of Microfinance Banks (NAMB), Dr. Adenrele Oni, disclosed this at the association’s 16th Annual General Meeting (AGM) in Abuja, where he also called on the Federal Government and the Central Bank of Nigeria (CBN) to provide more intervention funds and create a more enabling regulatory environment for operators.
Speaking during an interactive session with journalists on the sidelines of the AGM, themed “Beyond 20 Years: Engineering Sustainable Microfinance for the Next Generation,” Oni said the industry’s rapid expansion demonstrates the resilience of microfinance banks despite prevailing macroeconomic challenges. According to him, the sector’s loan portfolio stood at N2.4 trillion as of March 2026, while total deposits had grown to approximately N4.3 trillion, underscoring the increasing confidence of Nigerians in microfinance institutions. “Microfinance banks have contributed so much in supporting the Federal Government’s reforms targeted at transforming the economy, financial inclusion and poverty alleviation. From where we started and where we are today, we have done very well,” Oni said.
He commended the Presidency, the CBN and the Nigeria Deposit Insurance Corporation (NDIC) for policies that have strengthened the industry but stressed that additional support was needed to enable microfinance banks play a greater role in financing micro, small and medium enterprises (MSMEs).
According to him, increased intervention funds would allow operators to provide affordable loans to businesses and low-income Nigerians, thereby stimulating economic activities and accelerating inclusive economic growth. “We need more support in terms of intervention funds. It is only when you have intervention funds through the CBN and other government agencies that we can lend cheaply to the public. When you lend cheaply to businesses and ordinary Nigerians, you contribute more to the growth of the economy,” he said.
Oni also advocated a more business-friendly regulatory framework, saying a supportive operating environment would strengthen the capacity of microfinance banks to deepen financial inclusion, create jobs and improve livelihoods at the grassroots.
He said that the new leadership of NAMB would intensify public awareness campaigns to improve confidence in the industry and educate Nigerians on the developmental role of microfinance banks.
Earlier, the outgoing President of NAMB, Alhaji Abubakar Ahmad, said the association had recorded notable progress through sustained collaboration with the CBN, NDIC and development partners. He noted that strategic partnerships with organisations such as WASH had enhanced capacity building and institutional development within the industry.
Ahmad urged operators to remain united and support the new leadership, stressing that stronger institutions, improved corporate governance, digital transformation, increased capitalisation and sound risk management would be critical to sustaining the industry’s growth in the years ahead.