By Ayomide Otitoju
Accion Microfinance Bank has announced ambitious plans to provide approximately N60 billion in loans to micro, small, and medium enterprises (MSMEs) across Nigeria by 2025. This projection was shared by Taiwo Joda, the Managing Director and Chief Executive Officer of Accion Microfinance Bank, during a conversation with journalists after the bank’s annual Financial Inclusion Seminar.
The seminar, themed ‘Digital Lending: A Path to Financial Inclusion or a Barrier for the Informal Sector?’, serves as an advocacy platform for discussing trends within the microfinance industry among stakeholders, including regulators and civil society.
Joda expressed optimism about the upcoming year, stating, “The excitement for me is not this year but next year.” He highlighted a remarkable 1000 percent increase in loan uptake since transitioning from manual to digital processes. This year, the bank has disbursed an average of N3 billion monthly, totaling around N33 billion, with a cumulative N250 billion offered to MSMEs over the past decade.
In a bid to enhance its service, Accion Microfinance Bank plans to double its loan offerings, driven by customer demand and an expanding user base. Joda announced the opening of new branches in Kwara, Abuja, Kano, and Kaduna states, accompanied by a strategic focus on leveraging technology to engage more customers.
The CEO also noted the bank’s intention to collaborate with e-commerce platforms and target younger demographics, including Gen Z. “Our products are being redesigned to cater to these areas,” he asserted.
During the seminar, Joda addressed the critical issues of trust and digital literacy, acknowledging that many potential borrowers remain skeptical about digital finance solutions. He emphasized the need for ongoing education and collaboration to improve user confidence in digital lending.
Joda also revealed that the bank’s nonperforming loans have decreased to single-digit figures, crediting technology for improved risk management. He contended that low-income borrowers often demonstrate higher repayment rates than their affluent counterparts, stating, “I have more problems with the rich than the poor,” and attributing recent defaults to broader economic challenges rather than individual character.
Paul Ehiagbonare, Chief Digital Officer of Accion Microfinance Bank, echoed Joda’s sentiments, underlining the importance of digital transformation in enhancing accessibility for clients. He noted that a recently digitized product achieved a 1000 percent increase in performance within just ten weeks, illustrating the substantial impact of effective digitization on customer engagement.
As Accion Microfinance Bank looks ahead, the focus remains on expanding financial inclusion through innovative digital solutions and a commitment to supporting Nigerian MSMEs.
