Baobab Nigeria, a leading microfinance institution dedicated to empowering small businesses and individuals, has unveiled an ambitious expansion strategy aimed at deepening financial inclusion across the country.
At a high-profile press conference held at the Radisson Blu Anchorage Hotel, Lagos, the bank announced plans to raise fresh capital by April 2025 and expand its branch network from 38 to at least 100 locations by 2030. This bold initiative reflects Baobab Nigeria’s commitment to bridging financial gaps, fostering entrepreneurship, and driving economic growth.
A Vision for Financial Inclusion
The event gathered key stakeholders, including the Board of Directors, Baobab Group representatives, international partners, regulatory bodies, and industry leaders. Discussions focused on strategies for enhancing financial access, leveraging technology, and promoting sustainable economic development, underscoring Baobab’s role as a catalyst for economic empowerment.
A Legacy of Business Support and Financial Empowerment
Since its inception, Baobab Nigeria has been instrumental in supporting micro, small, and medium-sized enterprises (MSMEs). The bank has disbursed nearly N500 billion in loans, serving close to 300,000 clients and issuing nearly half a million loans. This track record highlights its commitment to fueling business growth, job creation, and community development.
Baobab Nigeria’s mission is to provide accessible, reliable, and impactful financial services to underserved African communities. Speaking at the event, Philip Sigwart, Group CEO of Baobab Group, reaffirmed the company’s vision of expanding its reach and deepening its impact.
“Small businesses are the backbone of Nigeria’s economy. Our goal is to create a sustainable and inclusive financial ecosystem that empowers entrepreneurs at every level. By continuously innovating and expanding our services, we reinforce our mission to provide financial solutions that fuel growth and economic development in Nigeria and across Africa.” – Philip Sigwart, CEO, Baobab Group
Capital Injection to Power Growth and Expansion
A major highlight of the event was Baobab’s plan to inject fresh capital into its operations. While the exact amount is under review, Sigwart assured that it would be a substantial boost to support the bank’s growth trajectory.
“We are finalizing the precise amount, but what is certain is that this capital injection will significantly strengthen our financial base. Our goal is to remain fully compliant with the Central Bank of Nigeria’s (CBN) regulations while having the capacity to drive our ambitious expansion plans. The first capital infusion will take place in April 2025, followed by another within a year.”
Baobab Nigeria’s expansion strategy is among the most ambitious in the microfinance sector, with clear targets to triple its operational size and establish a strong presence across Nigeria.
“Currently, we operate 38 branches, but within five years, we aim to reach at least 100 locations, ensuring our services are accessible in every region of the country. Our mission is to extend financial access to underserved communities, bringing banking closer to millions of Nigerians who need it most.” – Philip Sigwart
Sustainable Growth Strategy
Baobab Nigeria has built a strong financial foundation to support its expansion. As of December 2024, the bank’s Gross Loan Portfolio (GLP) stands at N60 billion, while its balance sheet size has reached N80 billion—reflecting a strong demand for its financial products and services.
Eric Ntumba, MD/CEO of Baobab Nigeria, emphasized the bank’s long-term sustainability.
“Our growth is not just rapid; it is strategic and sustainable. We have maintained a low Portfolio at Risk while nearly doubling our loan portfolio in just one year. At Baobab, we focus on the 3Ps—Planet, People, and Profit—which guide us in delivering responsible and impactful financial services to the communities we serve.”
With a clear roadmap, Baobab Nigeria aims to achieve a N1 trillion balance sheet over the next five years.
“During our last management retreat, we set a goal to reach a N1 trillion balance sheet—a tenfold increase. While ambitious, we believe it is achievable, possibly even sooner.” – Eric Ntumba
Closing Nigeria’s Financial Access Gap
A key driver behind Baobab’s expansion is the urgent need to bridge Nigeria’s financial access gap. Ntumba pointed out that nearly 300 local governments lack a single financial institution.
“This is the gap we aim to fill. Our expansion is guided by data, ensuring we prioritize underserved communities with little to no banking access.”
Beyond physical branches, Baobab Nigeria is leveraging digital banking solutions to extend its reach far beyond traditional banking models.
“Even with 100 branches, our digital banking solutions will allow us to operate as if we had 1,000, ensuring that customers in remote areas can access financial services conveniently.”
In terms of staffing, Ntumba projected a near twofold increase in employees over the next five years, ensuring the bank’s human capital aligns with its expansion goals. However, technology and automation will play a key role in enhancing efficiency and customer experience.
Baobab’s financial services are expected to fuel business growth, job creation, and economic empowerment—key components of Nigeria’s overall economic transformation.
Commitment to Financial Inclusion and Economic Growth
Baobab Nigeria’s expansion aligns with its mission to empower businesses and individuals by providing world-class financial services, particularly in areas lacking banking institutions.
Rotimi Oyekanmi, Chairman of Baobab Nigeria, reaffirmed this commitment:
“Financial inclusion is at the heart of our mission. We aim to reach all 36 states in Nigeria, prioritizing underserved regions. Expanding our footprint is not just a business goal—it is a commitment to empowering millions of Nigerians with the tools they need to build a better future.”
The presence of Baobab’s Board of Directors and key stakeholders at the event underscored the bank’s leadership in the financial sector. Their collective vision and strategy position Baobab Nigeria as a major driver of entrepreneurial growth and financial empowerment in the country.
A Bright Future Ahead
With a strong track record of success, a clear roadmap for expansion, and a commitment to innovation, Baobab Nigeria is poised to reshape the financial inclusion landscape.
By injecting fresh capital, scaling its branch network, leveraging technology, and maintaining a customer-first approach, Baobab Nigeria is set to unlock unprecedented economic opportunities for individuals, businesses, and communities across the nation.
