Omiye Microfinance Bank Limited, originally established as Ilupeju-Ekiti Community Bank in 1991 and later rebranded in 2008, is embarking on a strategic growth trajectory aimed at solidifying its position within the Nigerian microfinance landscape. The bank’s primary objective is to elevate its operational license from a unit MFB to a tier-1 MFB, a move that will significantly broaden its operational scope and market reach. This ambitious goal is underpinned by a planned increase in share capital from N500 million to N1 billion, attracting both existing and potential investors. The capital injection will provide the financial foundation for the bank’s expansion plans and bolster its capacity to serve a wider customer base. The application for the license upgrade is currently under review by the Central Bank of Nigeria (CBN), and the bank’s leadership expresses optimism about a positive outcome.
The anticipated upgrade to a state-level license is a pivotal step in Omiye MFB’s growth strategy. This expanded license will allow the bank to establish branches across Ekiti State, fulfilling its dual mandate of delivering financial and social benefits to shareholders and the communities it serves. The bank’s proactive approach to forging partnerships with various stakeholders, including the Ekiti State Government, local governments, educational institutions, and community development associations, underscores its commitment to local development. These collaborations are expected to generate mutually beneficial outcomes, contributing to the overall economic growth of the region and strengthening the bank’s integration within the community.
Omiye MFB’s short-term objectives focus on deepening its market penetration within Ekiti State and expanding its branch network. This expansion is designed to address the financing gap faced by numerous Micro, Small, and Medium Enterprises (MSMEs) and meet the credit demands of low-risk public sector employees. By increasing accessibility to financial services, the bank aims to stimulate economic activity and empower local businesses and individuals. The expansion will also enhance the bank’s market share, solidifying its position as a key player in the Ekiti State microfinance sector.
Looking beyond the immediate future, Omiye MFB’s medium-term goal is to secure a state license, further extending its reach across all 16 local government areas of Ekiti State. This expansion will enable the bank to offer a broader range of financial products and services, catering to the diverse needs of the state’s population. Ultimately, the bank envisions obtaining a national license, a long-term objective that positions it among the leading microfinance banks in Nigeria. This national presence will significantly expand the bank’s customer base and solidify its role in contributing to national economic development.
Omiye MFB’s financial performance in the 2023 fiscal year reflects the success of its strategic initiatives. The bank recorded a substantial 43% increase in gross earnings, rising from N152 million in 2022 to N217 million in 2023. This impressive growth underscores the bank’s strong market presence and effective business strategies. Profit before tax also experienced a remarkable 80% surge in 2023, further demonstrating the bank’s financial strength and profitability.
The bank’s commitment to financial inclusion and community development is evidenced by the growth in customer deposits and loans. Customer deposits increased by 50% in 2023, reaching N328 million, up from N218 million in 2022. This growth signifies growing public trust in the bank and its ability to safeguard and manage funds. Loans and advances grew by 17% in 2023, following a significant 62% growth in 2022. This sustained growth in lending demonstrates Omiye MFB’s dedication to providing accessible credit to individuals and businesses, fueling economic growth within its operational area. The bank’s strategic vision, combined with its strong financial performance, suggests a promising future for Omiye MFB and its continued contribution to the Nigerian microfinance sector.
