Citibank, part of the Citigroup global financial services company, will provide a USD 1mm Nigerian naira equivalent structured loan through it’s subsidiary, the Nigerian International Bank (NIB), to Lift Above Poverty Organisation (LAPO), a Nigerian microfinance institution (MFI). The loan is supported by a USD 500,000 guarantee from the Grameen Foundation. The deal is LAPO’s first commercial transaction with a bank, and the first transaction between Citibank and a Nigerian MFI. The investment comes at a time when many Nigerian MFI’s are struggling to meet minimum capital requirements (see previous article on microcapital.org) among other standards to be introduced in forthcoming regulation of the industry, due to be enforced by the Central Bank Nigeria (CBN) in December 2007 (see previous article on microcapital.org).
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