Banking
DBN Advocates Sustainability Banking for Microfinance Banks
As Nigeria and global communities continue to grapple with effects of climate depletion and economic uncertainties enforced by the COVID-19 pandemic, Development Bank of Nigeria (DBN) has urged Microfinance Banks (MFBs) and its other Participating Financial Institutions (PFIs) to improve their sustainability efforts and become more responsive to their social and ecological environment.
This was the thrust of deliberations at a recent webinar session themed Creating a sustainability community of Practice for Nigerian Microfinance Banks which was organised by DBN for MFBs and PFIs.
The initiative is focused on further deepening DBN’s efforts to increase awareness on sustainability issues, and also positively influence its Participating Financial Institutions (PFIs) Sustainable Development Goals (SDG) focused initiatives and operations.
DBN Chief Operating Officer, Mr Bonaventure Okhaimo, in his welcome address said there is increased global attention on social impact and contribution of business to their environment and society. He explained that the webinar session is to initiate a conversation around sustainability initiatives and implementation strategies for financial institutions in Nigeria.
“Currently, the overall awareness of sustainability and its transitions for the microfinance ecosystem has not been clearly articulated in Nigeria due to the fact that most MFBs regard lending as the most essential service to be rendered to end-lenders.
“This session is designed to enable PFIs and DBN affiliated MFBs to have a more robust proposition about sustainability and will open them up to myriad advantages, including external funding, generation of deeper trust with stakeholders and legitimization of operations,” he said.
Delivering her keynote address, Special Adviser to CBN Governor on Sustainability, Dr Aisha Mahmoud, stated that deliberations on emerging issues of sustainability are important for the financial ecosystem.
According to her, MFBs, by virtue of their mandate, are already practising the social pillar of sustainability by lending to the underserved sectors of the economy, but have to focus more on the environmental impact of their lending by looking into the activities and operations of their investees through a sustainability lens. She added that today’s successful businesses are those that integrate sustainability in their operations.
“We cannot ignore the environmental pillar because it is as important as the social pillar. Due to our way of unsustainable consumption and production, we are constantly depleting the natural capital.
“We need to shift our growth pathway from the current trajectory to the one that improves the quality of human life while living within the carrying capacity of the planet earth.
“Going by feedback, companies always think sustainability is an additional cost to the business, but we need a shift from that perception because sustainability is a win-win situation that connects people, planet and the economy.
“Studies show businesses that integrate sustainability well outperform those that do not, as it lowers the cost of capital, results in better operational performance and positively influences the stock price,” she said.
In her remarks, DBN Sustainability Specialist, Lolade Awogbade, who spoke on sustainability benefits for MFBs, said sustainability is more important in these times of pandemic coupled with economic instability, and it is essential that there is an overall understanding of the influence MFBs have on communities and environments which they serve.
She added that investing in social and environmental sustainability initiatives will not only help finance companies in fulfilling their social mission but also differentiate them from competitors, give access to new market segments, provide access to new funding and improve their brand and corporate image.
“A study conducted by European Journal of Sustainable Development, the primary objective of Microfinance has largely been economic, but in recent years, the focus has shifted to a more social or developmental objective.
“In addition, there is a new entrance with the concept of Green Microfinance which entails providing low or moderate-income individuals with loans and technical assistance to help them procure and set up green or environmental friendly products and technology,” Awogbade said.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
