Mission
LAPO Microfinance Bank’s (LAPO MFB) aspirations are reflected in their Vision and Mission statement, which is simply ‘Improving Lives’. This is delivered through strong core values of integrity, innovativeness, customer-centeredness, simplicity and excellence. The bank’s sustainability statement goal is to ‘be a sustainable microfinance institution that supports its partners to become proactive participants in positively impacting the environment and society through sustainable practices, meeting the economic and social needs of clients while fulfilling the expectations of stakeholders’.
LAPO MFB believes that any improvement in the socio economic situation of the poor would initially take place with available financial services; and with the added support of physical labor and skills. Thus, the bank’s major concern is using finance to deliver sustainable economic, social and environmental development, with a focus on helping to eradicate poverty in society, as well as supporting individuals to fulfill their potentials.
To guarantee that LAPO MFB remains true to their cause, the bank has a Client Protection Principle to stay on track with their mission, vision and values as they grow and change. The policy articulates the principles that guide the bank, and their commitments as a credit-led organisation. The bank’s values and social, economic and environmental concerns are incorporated into decision-making.
History
LAPO Microfinance Bank is an off-shoot of Lift Above Poverty Organisation (LAPO), which was initiated in the late 1980s as a pro-poor development institution committed to the empowerment of low income Nigerians through the provision of responsive financial services delivered on a sustainable basis.
In 2010, LAPO MFB obtained approval from the Central Bank of Nigeria (CBN) to operate a regulated microfinance bank and was licensed as a national microfinance bank in 2012 to undertake microfinance banking activities in Nigeria.
With an asset base of over 48 Billion Naira and shareholder funds in excess of 9 Billion Naira, the bank has demonstrated speedy growth from inception and has quickly evolved into the leading provider of financial services to over 2 million micro, small and medium enterprises clients in Nigeria. The bank has over 5800 employees and 386 branches across Nigeria.
Structure
LAPO MFB is a limited liability company. The bank is divided into eight zonal offices, 31 area offices efficiently managed by the Zonal Managers who report to the Head Office. LAPO MFB is governed through the Board of Directors and the Management team.
Board of Directors
Dr. Osarenren Emokpae, Chair
Dr. Godwin Ehigiamusoe, Chief Executive Officer
Osaretin Demuren, Chair -ESG Board Committee
Osayande Ede, Chair, Finance/General Purpose Board Committee
Rene Azokly, Chair, Credit &Risk Management Board Committee
Andrew Ejoh, Audit Chair, Board Committee
Faith Osazuwa – Ojo, Executive Director, Risk Management
Nwachukwu Josephine, Executive Director, Corporate Planning &Strategy
Market Focus, Products and Services
LAPO Microfinance Bank provides a range of unique financial and social empowerment services to low income households, micro and small businesses. The product range includes:
Enterprise loans
Clean energy loans
Housing loans
Deposits
Asset loans
Agric loans
Education loans
The bank’s Social Impact Deposit (SID) product allows socially responsible individuals deposit funds with the bank based on the understanding that the funds will be disbursed to the economically active poor. Depositors earn interest and also positively impact society.
The bank’s Clean Energy loan products are carefully designed to provide clients with a soft loan scheme to encourage switching to alternative sources of energy, for example, solar power lanterns and cooking gas alternatives that positively impact the environment.
LAPO MFB’s engagement in microfinance is much more than business as usual. It is about the development of people, particularly women. After several years of supporting the businesses of poor women, the bank’s aim is to continuously provide women with the capacity to actively participate in the economy and ensure inclusion. The bank’s desire is to reach the underbanked; this informs their wide network reach of 384 branches in rural communities. Part of LAPO’s goals is to include a larger proportion of women into their financial scope; this is because women form a greater percentage of the financially excluded, and this is why 92% of the client base is women.
Lift Above Poverty Organization
LAPO is a Nigerian organisation with a microfinance bank dedicated to self-employment through microfinance and an NGO, a non-governmental, non-profit community development organization focused on the empowerment of the poor and the vulnerable.[1]
LAPO focuses on assisting the poor, especially the women, in raising their socio-economic statuses. It not only acts as a microcredit institution, but also assists clients in overcoming problems beyond the lack of funds(Business capital), such as illiteracy and environmental degradation (which often aggravates poverty). Moreover, it aims to enhance leadership skills, literacy status and political participation among poor women. It empowers women by providing opportunities for them to learn income generating skills such as sewing, food processing and soap making.
History Edit
In 1987, the Lift Above Poverty Organization (LAPO) started as a non-profit entity at Ogwashi-Uku in present-day Delta State. The Institution was established as a Non-Governmental Organization (NGO) by Godwin Ehigiamusoe in response to the effects of the implementation of the Structural Adjustment Programme (SAP) in 1986. In 1991, the Ford Foundation gave a grant to LAPO. LAPO was formally incorporated as a non-profit, non-governmental organization with the Corporate Affairs Commission, a federal agency, in 1993. In 2004, LAPO scaled up as a sustainable and effective lending institution drawing inspiration from best practice model of Grameen and ASA methodology in Bangladesh.
In Nigeria, LAPO has partnered with the Grameen Bank. In 2010, LAPO transformed its Microfinance activities into a regulated microfinance bank, LAPO Microfinance Bank limited, while the remaining activities continued under the LAPO NGO.
In 2010, LAPO Microfinance Bank obtained the approval of the Central Bank of Nigeria (CBN) to operate as a state microfinance bank and in 2012, it got an approval as a national microfinance bank. It celebrated their one millionth client and one billion dollars cumulative disbursement in 2013.[2] In 2014, LAPO MfB was awarded ‘Microfinance Bank of the Year 2013’ by BusinessDay[3] and Leadership Newspaper.[4]
Financial services provided Edit
LAPO provides poor Nigerians with the following financial services:[5]
Different types of loans Edit
Regular loan (RL), obtained by LAPO members through their groups as capital for entrepreneurship.
Festival Business Loan (FBL), which enables the clients to fund business activities during festive periods.
Farming Loan, developed exclusively for food crop farmers, in which the disbursement and repayment schedules follow the pattern of activities in farming cycle.
Credit-for-shares, allowing the poor to acquire and manage shares or stocks in profitable companies.
Asset loans, which are designed for clients to invest in the acquisition of income generating assets such as commercial transportation and household appliances.
Savings programmes Edit
There are also different types of savings programs for capital accumulation:
Regular savings. Clients make mandatory weekly deposits into their savings accounts at group meetings which serve as funds for investment in capital accumulation. Withdrawal is only allowed at termination of relationship with LAPO.
Voluntary savings, in order to aid clients with capital investment. Clients are motivated to set aside surplus funds, and so generate more funds by earning competitive interest rates on the balances.
LAPO has set up a few subsidiaries to help tackle poverty in Nigeria. LAPO Agricultural and Rural Development Initiative (LARDI) was established to improve the lives of the rural poor in Nigeria. It helps to generate youth employment, to promote infrastructural development, to facilitate farmer’s access to capital and physical inputs such as credit, storing and processing facilities, to acquire information on relevant farming issues and to improve the farmers and rural households’ health.[6] Micro Investment Support Services (MISS) was set up to provide microcredit services t for income generating purposes.[7] Academy for Microfinance and Enterprise Development (AMED) was established to provide training and technical services to LAPO Group and other microfinance institutions.[8]
Positive impact Edit
LAPO has helped many poor Nigerians to achieve their basic needs and a high percentage 66.7% of ex-clients indicated that the loan has helped them a lot.
Negative aspects of LAPO Edit
35.7% of ex-clients face difficulty in paying their loans, and many (usually second-loan clients) also find that the loan is too small.
From May 2010 Kiva Microfinance suspended fundraising for loans from LAPO and is refunding LAPO loans on the site that have yet to be fully funded.[13]
References Edit
^ "LAPO Providing Affordable Micro Housing". BUSINESS DAY.
^ Obodo, Ejiro (June 26, 2014). "The Nigerian Banking Award 2014". BUSINESS DAY ONLINE. BUSINESS DAY. Retrieved 18 April 2015.
^ Correspondents (Oct 15, 2014). "LEADERSHIP Conference/Awards: I Owe Everything To Nigeria – Gowon". LEADERSHIP NEWS. LEADERSHIP. Retrieved 18 April 2015.
^ http://www.lapo-nigeria.org/
^ http://www.lapogroup.org/LARDI/
^ http://www.lapogroup.org/MISS/
^ http://www.lapogroup.org/LARDI/
^ http://www2.ids.ac.uk/impact/publications/partner_publications/LAPO%20Client%20Exit%20Study%20Final%20Report.doc
^ http://www2.ids.ac.uk/impact/publications/partner_publications/LAPO%20Client%20Exit%20Study%20Final%20Report.doc
^ http://www2.ids.ac.uk/impact/publications/partner_publications/LAPO%20Client%20Exit%20Study%20Final%20Report.doc
^ http://www2.ids.ac.uk/impact/publications/partner_publications/LAPO%20Client%20Exit%20Study%20Final%20Report.doc
^ KIVA suspends LAPO May 6 2010
External links Edit
LAPO's microfinance bank home page
LAPO's NGO home page
LAPO's profile at Grameen Bank
Withdrawal of LAPO Rating by MicroRate Aug 2009
New York Times front page Apr 13 2010
Last edited 1 month ago by Klbrain
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