Oikocredit loan to Baobab Microfinance Bank will boost Nigeria’s micro, small and medium enterprises

Amersfoort, the Netherlands – Social impact investing cooperative Oikocredit has made a first-time loan of USD 5 million to Baobab Microfinance Bank in Nigeria to augment support for micro, small and medium enterprises.

Baobab is a new Oikocredit partner. Licensed by the Central Bank of Nigeria, it serves more than 200,000 clients in Nigeria with a range of online and branch-based banking and other financial products and services.  

The collaboration underscores both organisations’ shared commitment to responsible and inclusive finance that empowers underserved enterprises and households while promoting business growth and sustainable economic development across Nigeria.

Eric Ntumba, MD/CEO of Baobab Nigeria, said: “We are excited about the collaboration with Oikocredit. This funding is pivotal as we intensify our efforts to empower more micro, small, and medium-sized enterprises (MSMEs) across Nigeria. By combining our expertise, we can expand our reach and help more entrepreneurs achieve their goals while contributing to national economic development. This partnership represents a significant milestone in advancing financial inclusion in Nigeria, where MSMEs are vital in driving economic growth.

Ufuoma Eghwerehe, Country Manager, Nigeria, at Oikocredit said: “We are very pleased to launch this new collaboration with Baobab Microfinance Bank Nigeria. Baobab is an ideal partner for Oikocredit as we look to support sustainable development among lower-income communities. Together we can enhance financial inclusion, support more small and medium enterprises to thrive, and achieve positive social impact.”

About Baobab Microfinance Bank Nigeria

The Nigerian subsidiary of the Baobab Group (founded in 2005 as Microcred and taking the name Baobab in 2018), Baobab Nigeria provides responsible financial services aimed at improving economic opportunities, health and education among underserved populations. Baobab is committed to promoting social equity and women’s empowerment while protecting the environment for future generations.

Baobab Nigeria operates online services and numerous branches across the country. It endorses and applies the Smart Campaign Principles of fair, respectful and non-discriminatory practices and client protection.

For more information, visit https://baobab.com/ng.

About Oikocredit

Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.

Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.

Oikocredit finances more than 520 partners, with total outstanding capital of EUR 1,029.8 million (at September 2024). For more information, visit www.oikocredit.coop.

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Note for editors

For more information or to request an interview, please contact: Viviana Cordero, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: vcordero@oikocredit.org.