Baobab Nigeria is on a mission to bring financial solutions to every Nigerian, placing a strong emphasis on fostering financial inclusion. Starting in Mexico in 2005, the company’s first Nigerian branch was established in Kaduna, and it has since expanded its reach, serving over 200,000 users across 16 states, including Kaduna, Lagos, and Rivers. The primary focus remains on extending financial services to areas beyond the major commercial centers in Nigeria.
Historically, Nigeria has experienced a significant gap in financial access, especially for low-income individuals and small businesses. The Central Bank of Nigeria’s (CBN) Microfinance Policy Regulatory & Supervisory Framework For Nigeria, released in 2005, aimed to address this challenge, leading to the establishment and growth of over 700 microfinance banks, with total assets reaching ₦1.35 trillion in 2022.
Originally known as Microcred Microfinance Bank, the company rebranded to Baobab in 2018, symbolizing its dedication to Africa. This reflects its evolution beyond providing credit to Nigerian entrepreneurs and its renewed focus on serving diverse financial needs while maintaining a strong commitment to the African continent.
Baobab’s evolution embraces technological advancements, shifting towards digital channels to cater to the evolving needs of its clients. While it maintains physical branches, the incorporation of digital channels has allowed Baobab to meet customer needs around the clock and expand its service offerings.
In response to customer feedback, Baobab introduced a point-of-sale (PoS) network and a savings application, Jollof+, tailored to meet various customer needs. This includes features such as timed deposits, target savings, and flexible savings accounts, all designed to appeal to different segments of the market.
As part of its commitment to supporting micro, small, and medium enterprises (MSMEs), Baobab has been recognized for its contributions within the industry, winning awards such as the MSME Microfinance Bank of the Year and the Most Outstanding Micro Lending Service Brand of the Year.
Looking ahead, Baobab seeks to enhance its technological capabilities while expanding its physical presence across Nigeria, recognizing the vast opportunities for growth and impact.
Despite the challenges associated with establishing trust, particularly in a market where skepticism about financial institutions persists, Baobab remains focused on its goal of improving financial inclusion across the country.
Baobab’s journey in Nigeria is one of commitment to addressing financial inclusion, leveraging technology, and dedicating efforts towards making a positive impact nationwide.
