Baobab Group is planning to increase its investment in Nigeria by injecting substantial capital into Baobab Microfinance Bank.
The move underscores the company’s commitment to providing funding that will support the growth of micro, small, and medium-scale enterprises (MSMEs) across the country.
With the funds expected to be injected by the end of April 2025, the bank said, it aims to expand its branch network to over 100 within the next three years, focusing on underserved local government areas in Nigeria.
Speaking with journalists over the weekend, the group chief executive of Baobab Group, Philip Sigwart, highlighted the company’s dedication to supporting microenterprises and small businesses through impactful financial services.
“As the biggest economy in Africa, Nigeria presents a significant opportunity for us to scale up our operations. We are committed to extending our reach to unserved and underserved communities.
“We need to scale up by 10 times and expand our presence in the country. Discussions are already underway, and by next month, we plan to inject additional capital into Baobab Microfinance. At Baobab, we recognize that small businesses are the backbone of the Nigerian economy.
“We are committed to building a sustainable and inclusive financial ecosystem that empowers entrepreneurs. By continuously innovating and expanding our services, we reinforce our mission to provide accessible financial solutions that drive growth and economic development in Nigeria and across Africa,” Sigwart said.
Managing director and chief executive of Baobab Nigeria, Eric Ntumba, also emphasised the company’s sustainable growth strategy., adding that, “Our growth is quite sustainable because, when we assess our quality metrics, we have managed to maintain a very low portfolio at risk while nearly doubling our loan portfolio within just one year. At Baobab, we focus on the ‘Three Ps’—Planet, People, and Profit. These principles guide us in delivering balanced services to the various communities we serve.”
He further revealed that the bank plans to expand its business through digital transformation by modernising its technology platform, localising IT services in Nigeria, and developing digital financial products such as digital lending and a digital loan origination system.
Since its inception, Baobab Nigeria has disbursed nearly N500 billion in loans to micro, small, and medium enterprises, even as it served close to 300,000 clients and successfully processed nearly half a million loans, reinforcing its pivotal role in fostering financial inclusion and business expansion in Nigeria.
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