AB Microfinance Bank Nigeria


AB is a MFB offering a simple range of transparent credit and retail products to the micro-entrepreneurs and small enterprises of the Lagos state, Nigeria. The Bank has commenced operations in November 2008.

BIO’s financing allows the growth of a professional and efficient MFI in Nigeria, allowing AB to support more micro- and small enterprises. It will improve financial access to unbanked entrepreneurs, while stimulating economic growth and generating jobs. Additionally, BIO will play a significant role as provider of long-term funding to a reliable player in the Nigerian microfinance market, when deposits are hard to come by and local refinancing options are inexistent. The investment being a long-term loan in local currency, provides stability in the Bank’s funding. BIO’s supports to AB will as well contribute to the diversification and deepening of the local MSME finance sector.

This Nigerian MFI is the reliable financial partner for MSMEs in Lagos. Through its support, BIO contributed to the consolidation or creation of approx. 1.000 jobs.

AB Nigeria follows the international standards of the Client Protection Principles, endorsed and supported by BIO. The MFI employs best practices in terms of customer protection to serve as an example on the Nigerian microfinance market. Some examples of the client protection principles that the MFI was trained on and applies:

  • Avoidance of over-indebtedness through detailed analysis of the financial situation of the client by the loan officer and installment based on payment capacity, analysis to establish the level of indebtedness, cross- checks to detect eventual non declared loans by the client.
  • Transparent and responsible pricing and conditions by interest calculation on declining basis, no hidden fees. No mandatory savings for the client, which is common practice in the microfinance sector in Nigeria. Both loan officer and client advisor explains the pricing, conditions and legal implications. Both loan officer and client advisor are trained on interacting with financially illiterate clients.
  • Ethical staff behavior: Zero tolerance towards unethical behavior; Code of conduct and yearly reinforcement
  • Privacy of client‘s data ensured through a secured information system and well trained staff.

  • Investment amount (€):

    Debt: €2M


  • Contract signature :


  • Nature of intervention :


  • Development impacts :

    • 1 — Increase access to financing for SMEs
    • 2 — Job creation