IFC backs LAPO with $10 million to expand MSME lending

International Finance Corporation (IFC) is preparing up to $10 million senior loan for Nigeria’s Lift Above Poverty Organisation Microfinance Bank (LAPO MFB), founded by Godwin Ehigiamusoe, to expand lending to micro, small and medium-sized enterprises (MSMEs).

The investment, pending approval, aims to deepen financial inclusion in Africa’s third-largest economy by scaling credit access for underserved businesses. Backed by blended finance guarantees, the facility will help LAPO MFB increase digital lending, support women-led enterprises, and strengthen its role in Nigeria’s fast-growing MSME ecosystem.

Expanding financial inclusion
The facility will be supported by a pooled first-loss guarantee of up to $40 million from the International Development Association’s Private Sector Window Blended Finance Facility, enabling LAPO to scale lending to underserved segments.

About 80% of the proceeds will be deployed to expand the bank’s base-of-pyramid MSME lending program, including the rollout of its digital lending platform to deepen financial inclusion.

The remaining 20% will support supply chain finance initiatives, including transactions facilitated through a digital marketplace operated by Fiducia Data Services Limited, which connects MSMEs to anchor corporates while reducing lending risks and processing costs.

Strengthening digital and risk capabilities
Alongside the financing, IFC is exploring advisory support to enhance LAPO’s product development, distribution channels, digital infrastructure, and risk management systems. The initiative will also target non-financial services for MSMEs and women-owned businesses, reinforcing inclusive growth.

LAPO’s nationwide footprint
Founded in 2007 as an offshoot of the Lift Above Poverty Organization, LAPO MFB has grown into one of Nigeria’s largest microfinance institutions, serving over one million clients through more than 500 branches across all 36 states.

The lender focuses on women entrepreneurs, nano enterprises, and smallholder farmers, supported by a hybrid lending model and mobile agent network. The microfinance institution is majority owned by LAPO NGO with a 56.9% stake, while founder Godwin Ehigiamusoe holds 40.1%.

LAPO IFC $10 million MSME lending — Godwin Ehigiamusoe, founder of LAPO MFB, holds 40.1% stake while his LAPO NGO controls 56.9

Catalyzing MSME growth
IFC’s planned investment highlights increasing reliance on blended finance to unlock lending to high-risk but high-impact segments.

By combining concessional guarantees with private capital, the project is expected to strengthen LAPO’s lending capacity, scale digital finance solutions, and support Nigeria’s vast MSME ecosystem, seen as critical to job creation and economic resilience.