Microfinance Banks In Nigeria To Invest In Digital Channels

Microfinance Banks (MFBs) in Nigeria have been urged to accelerate investment in digital channels for loan disbursement and collection to mitigate the impact of Pandemic  in the industry.

Following the new trend of different sectors impact of pandemic, a new report by Agusto & Co on COVID-19 and microfinance bank said the pandemic hurt the microfinance industry in Nigeria.

The report noted that despite up to ₦N5 billion spent by the major national and state microfinance banks in Nigeria on the implementation of new technology, mobile and USSD banking services, the industry remains heavily reliant on brick-and-mortar operation for the acquisition of customers and disbursement of loans.

According to the report, many microfinance banks in the country, like in most other developing countries with relatively low penetration of e-channels, witnessed a doubling of obligations during the first wave of the pandemic and lockdown restrictions in early 2020.