Given the economic nature of Nigeria, you find out that most citizens instead of waiting for a ‘white collar’ job have chosen the path of entrepreneurship. However, capital has always remained an issue for many. The idea of a microfinance bank offers the solution to this problem. A microfinance bank is a bank that offers financial services to individuals and small businesses that lack access to conventional banking. The bureaucratic nature of conventional banks have made the presence of these microfinance banks appreciated in Nigeria.
Although, the giving out of loans is the major service being rendered by microfinance banks, however such financial services such as savings, insurance, payment services and fund transfers have been incorporated into their services.
Microfinance has been viewed as a way to promote economic development, employment and growth through the support of micro entrepreneurs and small businesses and also a way for the poor to manage their finances more effectively. However, microfinance has been faulted on the ground that it causes indebtedness. Nevertheless, no one can shy from the fact that the presence of microfinance banks in Nigeria have been helpful especially to the poor.
Below is a list of the top five microfinance banks in Nigeria:
1. AB Microfinance Bank:
This is one of the best microfinance banks in Nigeria. It was founded in 2002 by a company believed to be owner by foreigners. The headquarters is located at No.11, Oba Akran Avenue, Ikeja, Lagos.
2. Mainstreet Microfinance Bank:
This started its operation in 2009 and is one of the best in Nigeria. It was formerly known as Afribank Microfinance Bank. Its headquarters is at 94, Broad Street, Lagos Island, Lagos.
3. Fina Trust MIcrofinance Bank:
This is also reputed to be among the top microfinance banks in Nigeria. It was established in 2009. The headquarters is at 44, Toyin Street, Ikeja, Lagos.
4. Accion Microfinance Bank Limited:
This was established in 2006 and its among the top microfinance banks in Nigeria. It is located on the 4th floor, Elizade Plaza, 322 Ikorodu Road, Anthony Lagos
5. Altitude Microfinance Bank:
This is also one of the best microfinance banks in Nigeria. It was established in 2004. It is located at JP Plaza, Central Zone C Aspamada, Trade Fair Complex, Badagry Express way, Lagos.