Microfinance Banks’ Assets Grow to N358.787bn – CBN
Microfinance banks in Nigeria have seen significant growth, with non-financial assets reaching a record N358.787 billion in June 2025, marking the highest figure since 2018.
This growth is driven by increased interest in tangible and intangible assets, including real estate, equipment, and intellectual property.
The Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin reveals a 0.88% month-on-month increase and a 57.56% year-on-year growth compared to June 2024.
The total assets of licensed microfinance banks also reached N5.228 trillion in May 2025, a 32% growth in five months. This expansion highlights the sector’s growing financial base and importance in monitoring capitalization levels and regulatory compliance.
Some top-performing microfinance banks in Nigeria include Moniepoint, LAPO, and Kuda, offering innovative products and services such as instant account opening, business banking solutions, and mobile banking apps. These banks have capitalized on the growing demand for digital financial services, especially among small businesses and low-income households.
The microfinance sector has also seen increased adoption of technology, with neo-banks like Kuda and FairMoney driving innovation through digital platforms. This shift has made borrowing more accessible and convenient for Nigerians, contributing to the sector’s growth.
Despite challenges like inflation and rising interest rates, the microfinance industry continues to grow, with deposits increasing by 168% to N1.3 trillion as of mid-2024. This growth is driven by heightened demand for fixed-income instruments and increased financial inclusion.
The CBN has also intensified regulatory scrutiny, revoking 179 microfinance bank licenses in 2023 to ensure the sector’s stability and protect depositors. This move underscores the importance of compliance and sound risk management practices among microfinance banks.
