Baobab Nigeria Microfinance Bank has said it recorded 97 percent recovery rate of disbursed loans, even as Baobab Group posted a €14.8 million net result (N23.4 billion) for the year 2023, with an increasing customer base and deposit portfolio.
Baobab Group, a French company headquartered in Paris and the parent company of Baobab Nigeria, is an international financial services conglomerate with a presence in eight countries, spanning across Africa (Nigeria, Senegal, Mali, lvory Coast, Burkina Faso, DR Congo, Madagascar) and China.
Baobab Nigeria’s Board Chairman, Mr Rotimi Oyekanmi, has announced that the financial service provider for micro, small and medium-sized enterprises (MSMEs) is ready to expand its reach and unlock new growth opportunities by leveraging its national presence and international expertise.
During a press briefing in Lagos, Oyekanmi highlighted Baobab Nigeria’s commitment to innovation, collaboration and customer-centricity to drive sustainable development and foster inclusive economic growth across the country.
“As part of the global Baobab Group, we are confident in our ability to navigate challenges and seize opportunities to empower entrepreneurs and build a brighter financial future for all Nigerians,” Oyekanmi said.
He stressed the company’s dedication to making a meaningful impact on the lives of millions of entrepreneurs in Nigeria and beyond using the combined strengths of Baobab Group’s international reach and Baobab Nigeria’s local expertise.
Baobab Group reported solid financial and operational results for 2023 despite macroeconomic challenges and strong headwinds from geopolitical tensions.
The credit portfolio on the African continent grew by 12 percent vs. 2022. As part of a long-term strategy to mitigate liquidity and currency risk, the Baobab Group said it is building its savings business line, which delivered 10 percent growth in deposits for 2023. Baobab Group’s performance is driven by the strong results of its subsidiaries in the West African Economic and Monetary Union (WAEMU), where it remains the leading microfinance institution.
Acting CEO, Eric Ntumba, noted that since its inception, Baobab Nigeria has disbursed N229.66 billion in loans to support MSMEs, with women receiving about 56.3 percent of these loans compared to 40.4 percent for men.
“The company has issued 343,036 loans, with an outstanding loan portfolio of N40.95 billion as of April 2024. Loan amounts range from N1 million to N150 million and above.
“In 2023, Baobab Nigeria achieved 112 precent of its loan disbursement target, 124 percent of its Gross Loan Portfolio (GLP) target and 117 percent of its deposit target,” he stated.
Board member, Christina Reifschneider, emphasised the company’s commitment to client proximity, with 38 branches across 16 states and Abuja. “We ensure entrepreneurs have easy access to financial services,” she stated.
Reifschneider also underscored Baobab Nigeria’s commitment to transparency through its seven-pronged Client Protection Policy, which includes measures like preventing over-indebtedness and ensuring responsible pricing.
Reifschneider reiterated Baobab Nigeria’s dedication to empowering entrepreneurs and driving financial inclusion. The company’s products and services, such as the MyBaobabApp, Jollof+ Savings App and Point-Of-Sales machines, have created a niche in the market. The success is supported by robust IT infrastructure, high liquidity, access to funds and strong, diverse international ownership.
“Our focus is to delight our customers and our satisfaction surveys show they are pleased with our services,” Reifschneider added.
With a mission to promote financial inclusion, Baobab Group serves over half a million micro-entrepreneurs and small businesses, providing access to essential financial services tailored to local needs.
Baobab Nigeria, as part of this global network, leverages the expertise, resources and synergies of the Group to deliver impactful solutions and drive sustainable growth in Nigeria’s vibrant economy.
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