The International Finance Corporation (IFC), an arm of the World Bank Group, recently extended a NGN 800 million (USD 5 million) loan to Nigerian microfinance institution (MFI) Lift Above Poverty Organization (LAPO). The loan, which will be disbursed over a period of 4 to 5 years, is expected to help LAPO increase financial inclusion nationwide by offering a wider range of financial products and services, as well as health education and women’s empowerment programs to its clients. The loan will enable LAPO to offer clients longer tenors on their loans and provide additional products such as on-demand savings accounts. The IFC country manager for Nigeria, Solomon Adegbie-Quaynor, reportedly stated that this loan will allow LAPO to provide, “a platform to distribute other tailored services at the base-of-the-pyramid, including micro-health insurance and environmentally-friendly energy products, such as solar lanterns and cooking gas.” IFC will also assist LAPO in improving its governance and risk management structures. Solomon Adegbie-Quaynor reportedly added that this is IFC’s first funding to a Nigerian MFI and IFC’s “portfolio includes 24 microfinance clients across 12 countries in sub-Saharan Africa, which have reached over 1.5 million microenterprises and low-income households” [2].
Established in 1987 as a non-governmental organization (NGO), LAPO became an MFI in 2010. It provides savings, investment and loan products mainly to micro-, small and medium-sized enterprises (MSMEs). As of 2011, LAPO reports total assets of USD 86.5 million, a gross loan portfolio of USD 70.2 million outstanding to 421,000 borrowers, return on assets (ROA) of 5.19 percent, return on equity (ROE) of 31.4 percent and USD 43.2 million in deposits from 518,000 depositors.
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
By Sarah Benali, Research Associate
About Lift Above Poverty Organization (LAPO)
Established in 1987 in Nigeria, LAPO is a microfinance institution that provides savings, investment and loan products intended to address the needs of low-income households. The majority of LAPO’s clients are engaged in micro-, small and medium-sized enterprises (MSMEs). As of 2011, LAPO reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 86.5 million, a gross loan portfolio of USD 70.2 million to 421,000 borrowers, return on assets (ROA) of 5.19 percent, return on equity (ROE) of 31.4 percent and USD 43.2 million in deposits from 518,000 depositors. As of 2012, LAPO operates in 25 Nigerian states with a network of approximately 250 branches.
About International Finance Corporation (IFC)
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
Sources and Additional Resources
[1] IFC Investment Summary: “Loan to LAPO Microfinance Bank, Nigeria,” http://www.ifc.org/ifcext/spiwebsite1.nsf/651aeb16abd09c1f8525797d006976ba/e5270b3a6bcdd2cd85257a52005c3ddc?OpenDocument
[2] Allafrica.com story: “Nigeria: IFC Lends Lapo N800 Million to Expand Capacity,” November 2012, http://allafrica.com/stories/201211190701.html
[3] MicroCapital.org story: “MICROCAPITAL BRIEF: International Finance Corporation (IFC), Daiwa Securities of Asia to Issue Microfinance Bond in South Africa, Turkey,” November 10, 2012, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-daiwa-securities-of-asia-to-issue-microfinance-bond-in-south-africa-turkey/
[4] MicroCapital.org story: “MICROCAPITAL BRIEF: responsAbility Lends $6.2m to Mutual Alajuela of Costa Rica, Cooperativa Mixta Mujeres Unidas Limitada (COMIXMUL) of Honduras, Lift Above Poverty Organization (LAPO) of Nigeria,” December 9, 2011, https://www.microcapital.org/microcapital-brief-responsability-lends-6-2m-to-mutual-alajuela-of-costa-rica-cooperativa-mixta-mujeres-unidas-limitada-comixmul-of-honduras-lift-above-poverty-organisation-lapo-of-nigeria/
MicroCapital Universe Profile: Lift Above Poverty Organization (LAPO)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lift+Above+Poverty+Organisation+%28LAPO%29
MicroCapital Universe Profile: International Finance Corporation (IFC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
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