The share capital of Baobab Microfinance Bank Nigeria has risen to N4.8 billion, about N200 million short of the required N5bn proposed by the Central Bank of Nigeria (CBN) for recapitalisation of national microfinance banks across the country.
On March 8, 2018, CBN directed national microfinance banks to increase their share capitals to N3.5bn by April 2020 and N5bn by April 2021.
Speaking at the Baobab Nigeria Customers’ Forum held in Abuja Thursday, the Managing Director/Chief Executive Officer of the bank, Dr. Kazeem Olanrewaju, said, though the House of Representatives has asked the CBN to suspend the recapitalisation policy, Baobab Nigeria’s share capital is about to hit the N5bn mark.
He said the remaining N200 million of the bank’s share capital, impaired by loss (equity), would be raised before the end of 2020 and could hit N10bn in the next two years.
“The bank was profitable. We made a profit of over N600m. That happened because we had to write off and waive a lot of the penalties. Because of COVID-19, the usual practice of penalising people when they delay their payments was waived and that amounted to about N400m,” he said.
The MD said Baobab Nigeria moved from top 10 to top three within the industry between 2020 and 2021.
He said the bank has supported 237,550 customers with loans from inception, out of which 22,921 are still outstanding loan customers.
