Alert MFB grows assets to N50bn amid inflation, rising credit demand
By Babajide Komolafe
Alert Microfinance Bank Sees 20-Fold Asset Growth Amid Economic Challenges
Alert Microfinance Bank has experienced a significant increase in total assets, reaching N50 billion within three years. This growth occurs against the backdrop of rising inflation, naira depreciation, and increased demand for credit across Nigeria’s banking sector.
In an interview, Olanrewaju Kazeem, Group Chief Executive Officer of Alert Group, attributed the bank’s expansion to a strategic focus on financial inclusion and nationwide outreach, which followed the Central Bank of Nigeria’s approval of a national microfinance banking license.
“The growth in Alert Microfinance Bank and the larger Alert Group is a result of our intentional strategy to provide quality services to as many Nigerians as possible,” Kazeem said. “Currently, the Group has total assets of approximately N120 billion, with Alert Microfinance Bank contributing about N50 billion, up from around N2.5 billion three years ago.”
Kazeem emphasized the importance of extending services to areas with significant demand, particularly to improve financial inclusion for the underbanked and unbanked populations. He noted the strong acceptance of the brand, which necessitates further expansion across Nigeria.
Regarding operational challenges, Kazeem acknowledged that the industry remains in its infancy, making it difficult to recruit skilled personnel necessary for implementing their plans. He also highlighted the challenges posed by the Monetary Policy Rate set at 26.5 percent, which substantially increases the cost of funds for business operations. “When combined with operational costs, the price of credit becomes quite high,” he said.
Kazeem pointed out that elevated funding costs heighten repayment pressure on borrowers, increasing the risk of defaults. However, he noted that through strict discipline and effective monitoring, the bank has managed to keep its default rate below four percent.
He also indicated that inflation prompted the bank to adjust staff salaries four times last year to retain critical personnel amid challenging economic conditions. “Sometimes you have to exceed your budget to maintain essential staff due to prevailing macroeconomic realities,” he added.
Despite these challenges, Kazeem asserted that reforms have opened up new opportunities. As prices rise, businesses require greater working capital to replenish stock, which in turn increases the demand for loans. He pointed out that businesses that previously imported goods at rates of N500 to N800 now find themselves needing about N1,300, further fueling credit demand.
“Our deposits have surged by more than 200 percent annually over the past two years. People are saving more, and our growth strategy is unfolding as planned as we prepare for regional expansion across Africa,” Kazeem concluded.
