After issuing ₦237 billion in loans in 2024, LAPO Microfinance Bank (MFB) is set to launch a new banking app in early 2025, aiming to expand beyond its traditional customer base of petty traders. With a 35-year legacy in microfinance, LAPO is now targeting younger Nigerians and a more diverse clientele.
LAPO which is long known for providing small loans to low-income earners is seeking to redefine its image by offering broader financial services through its digital platform.
The new LAPO app, scheduled for release in the first quarter of 2025, will offer instant loans starting from ₦20,000, bill payments and everyday transactions, expense tracking and also fixed deposit accounts with competitive interest rates, rivaling platforms like PiggyVest and Cowrywise. “We’re creating a product that resonates with the evolving needs of our customers,” said Amechi Koldsweat, Head of Digital Banking. “People associate LAPO with the woman selling pepper in the market, but that same woman has children in university—children she took loans to educate.”
LAPO currently serves six million customers and is entering a highly competitive digital banking market dominated by players like OPay, PalmPay, and Moniepoint. However, its long-standing reputation, extensive physical presence in 34 states, and experience in issuing credit give it a strong foundation.
Despite its digital expansion, LAPO is not abandoning its brick-and-mortar branches. “Our physical locations remain essential for financial inclusion,” said Oluremi Akande, Director of Marketing and Communications. “Many of our customers still need in-person financial literacy programs and community support.”
This hybrid approach—combining digital services with on-ground operations—sets LAPO apart from digital-only fintechs.
LAPO MFB plans to grow its loan disbursements from ₦237 billion in 2024 to over ₦400 billion in 2025. The app will play a key role in this expansion by issuing faster, more accessible loans, ranging from ₦20,000 to ₦50 million, with monthly interest rates between 2.9% and 3.5%.
Recognizing the risks of digital lending, LAPO is taking a cautious approach. Unlike Blackcopper, a Techstars-backed startup that collapsed under ₦1 billion in unpaid loans, LAPO will gradually increase loan limits based on borrowers’ repayment history.
To reduce default risks, LAPO is partnering with credit bureaus like CRC and First Central while leveraging its proprietary customer data. “If customers have defaulted elsewhere, we will know before lending to them. For new users, we will review all available data,” Koldsweat explained.
By combining its trusted brand with new digital capabilities, LAPO is positioning itself to serve both its core market and attract tech-savvy younger customers. Its careful rollout strategy and hybrid model could prove crucial in overcoming competition from digital-only fintechs while maintaining customer trust.
