51653 - MFP-BOP LAPO NG

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Summary of Investment Information

Project Number

51653

Company Name

LAPO MICROFINANCE BANK LTD

Date SPI Disclosed

Apr 1, 2026

Country

Nigeria

Region

Africa

Projected Board Date

May 1, 2026

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

Apr 1, 2026

Department

CF3CA - Regional Industry - FIG Africa/FIG Central Africa

Industry

Financial Markets

Sector

Microfinance and Small Business - Non Commercial Banking

Additional Project Attributes

Blended Finance

Project Description

The proposed project consists of a senior loan of up to US$10 million in Nigerian Naira equivalent to LAPO Microfinance Bank Limited (“LAPO MFB” or the “MFB” or “LAPO”), one of Nigeria’s largest microfinance institutions. The project will be supported by a pooled first loss guarantee (“PLFG”) of up to US$40 million provided by International Development Agency IDA Private Sector Window Blended Finance Facility (“IDA-PSW BFF”) allocated to the Base of Pyramid (“BOP”) Envelope under the FIG MSME Platform. Approximately 80 percent of the proceeds will support the expansion of LAPO MFB’s BOP-focused Micro, Small and Medium Enterprises (“MSME”) lending program, including the scaling up of its digital lending platform to enhance outreach and financial inclusion, while the remaining 20 percent will be used to support supply chain finance (“SCF”) for MSMEs, including transactions originated through a digital SCF marketplace operated by Fiducia Data Services Limited (the “Project”).

Associated Advisory Engagement

In addition to the investment, IFC will explore an Advisory Services engagement aimed at strengthening the MFB’s product development, distribution channels, digital lending infrastructure, and risk management, as well as supporting non-financial services for MSMEs and Women-Owned MSMEs (“WMSMEs”).

Sponsor / Cost / Location

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to MSME (mix of Micro and SME)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant expected project level outcome is the increase in access to finance and working capital for microentrepreneurs, particularly women in Nigeria. In addition, the Project is expected to enhance competitiveness among microfinance providers and support the development of a transparent and efficient SCF marketplace that strengthens MSMEs’ pricing power and resilience through better governance and risk management practices.

Financial Additionality Financing Structure – IFC will provide LAPO with five-year, unsecured local-currency financing that is not readily available in the Nigerian market for microfinance institutions, reducing reliance on expensive, short-term, and highly collateralized interbank borrowings, easing liquidity constraints reflected in a high loan-to-deposit ratio. IFC’s provision of deliverable local currency financing also mitigates foreign exchange and refinancing risks associated with offshore funding. In parallel, IFC’s SCF will provide stable liquidity and structuring flexibility to LAPO, enabling higher transaction volumes on the Fiducia platform. Through this support, IFC will enable LAPO to expand its microfinance and MSME lending activities and strengthen the stability of its financing strategy. Non-Financial Additionality Knowledge, Innovation and Capacity Building: ESG and Labor Standards – IFC will support LAPO to enhance its ESMS and HR frameworks by strengthening its supply-chain risk identification, and protections for contract workers. IFC will also provide oversight through ESDD reviews and annual reporting.

Indicator	Metrics	Comments
Number of Outstanding Loans, MSMEs	number
Number of Outstanding Loans, Women-led MSMEs	number
Value of Outstanding Loans, MSMEs	$
Value of Outstanding Loans, Women-led MSMEs	$
Women-led MSME as a share of MSME loan portfolio	%

E&S Category Rationale / Risks and Mitigation

The Project entails a senior loan to LAPO Microfinance Bank. The Project will not support Exclusion List activities, coal-related activities, or E&S high-risk activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks. The E&S risks associated with the Bank’s investment activities are considered to be medium and can be readily addressed through mitigation measures. As such, the Project has been categorized as FI-2 according to IFC’s Sustainability Policy. The applicable E&S requirements for this Project will be the IFC Exclusion List, host country E&S laws and regulations.

The Reputational and Residual Risk screening of LAPO did not indicate any risks or media criticism of E&S concern.

The Bank has an ESMS in place, that is part of their Sustainability Policy. The ESMS aligns with the IFC Performance Standards on the definition of E&S responsibilities, the identification of E&S risks, and the incorporation of monitoring. The ESMS includes a criterion, in the form of a questionnaire, that LAPO uses to screen for potential environmental and social risks associated with their portfolio clients, as part of the E&S due diligence process. The ESMS is aligned to the scale and type of operations by the Bank, being a microfinancier.

The Bank has a Head of Sustainability, and an E&S manager. The E&S manager receives support from the client experience officers on E&S implementation. There is an ESG board committee, to which reporting is undertaken on a quarterly basis. An external communications mechanism is in place.

The Bank has an occupational health and safety (OHS) policy in place, which also includes addressing sexual harassment and abuse in the workplace. The OHS policy also includes life and fire safety considerations, including an emergency response procedure. An HR policy is also in place, with minor improvements required to align with IFC PS2.

S.no	Title	Anticipated Completion Date
1	E&S management system enhancements	06/30/2026
2	Labour and Working Conditions	06/30/2026

Contacts

For Inquiries About the Project, Contact

LAPO Microfinance Bank Limited
Obaroakpo Akiki
Head, Treasury and Creditors Relationship Management
+2348037311822
Obaroakpo.Akiri@lapo-nigeria.org
15, Ikorodu Road Maryland Lagos
www.lapo-nigeria.org

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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