LAPO Microfinance Bank limited is a Nigerian pro-poor financial institution "committed to the social and economic empowerment of low-income households through provision of access to responsive financial services on a sustainable basis".

In 1987, the Lift Above Poverty Organization (LAPO) started as a non-profit entity at Ogwashi-Uku in present-day Delta State. The Institution was established as aNon-Governmental Organization (NGO) by Godwin Ehigiamusoe in response to the effects of the implementation of the Structural Adjustment Programme (SAP) in 1986.

In 2004, LAPO scaled up as a sustainable and effective lending institution drawing inspiration from best practice model of Grameen and ASA methodology in Bangladesh. In 2008, the LAPO MfB Scholarship Scheme was instituted with the $10,000 cash prize from the Grameen Foundation Award for excellence.

In 2010, LAPO MfB obtained the approval of the Central Bank of Nigeria (CBN) to operate as a state microfinance bank and in 2012, it got an approval as a national microfinance bank. LAPO MfB celebrated their one millionth client and one billion dollars cumulative disbursement in 2013.

Lapo fondly called "Gbemule Lantern" in the local parlance because it doesn't give a grace period (moratorium) ever since they started their services nationwide. All the same, it has attracted huge clients based most especially the low incomes earners, artisans and traders to access loan without collateral seamlessly to boost their SMEs by joining   different grassroots groups coordinated by leaders and CSOs which improves Know your customers (KYC) and reduces the rate of defaulters or bad loans to a appreciable degree.

To achieve these one of  the orientation exercise mostly given to new member of the weekly contribution cluster groups  according to our findings is say "No to moratorium doctrine which includes; Lapo money no dey go labour room, lapo money does not know; Eid Adha, Eid kabir,Eid Molud, beloved and departed ones mourning, Christmas, new year, Esther, May Day, Children, Democracy day, independence day and general elections timetable respectively.

These simple means that if their thousand of  branch offices including the ones in Kosofe are under lock and key between 5pm to 8Am and during the National holidays or natural disasters its none of their cup of tea over their huge facility out there even during labour room; pregnant women are not expected to default in payment. Yet, many of their clients without showing any symptoms of  blindness, dumbness and deafness during their welcome sensitization meeting know about all these conditions without a gun loaded with bullets pointed to their foreheads but after collecting the facility some suddenly started showing disability traits through the weekly payments default contrary to the signed, sealed and delivered agreement both parties witnesses attest to before getting the loan without collateral but only guarantor(s).

Some of them told pleads profusely to get these loans to address some social and economic issues and displayed big smiles when they finally get the loan. However, at the point of repayment you will see and hear some debtors coming with all manners of excusitis diseases, shedding bucket of tears or developed high blood pressure and other related health issue as result of the loan repayments failure as result of misused of the loan or act of God mostly not entertained by financial institutions.

The public harassment, embarrassment and shame that follows the loan recovery are not psychologically handsome for most debtors .

Some have genuine reasons that could warrant justice to be termer with mercy by the group leader, members,  CSO by mutually pulling from other member savings to settle some defaulting member payments as brothers keepers and to protect their group image and integrity.

Some clients who don't have watertight excuse to default in payments are those who took the loan for business purposes  but end up  using  it for final burial, weddings and naming, chieftaincy and religious tittles ceremonies respectively that doesn't guaranteed rollover on the amount expended on such entertainments then blamed their financial recklessness on Lapo mfb, others and called them on printable names.

Also, those having man made issues with our well recognized and respected global eater and drinker of "fish and water" or "water and fish" who knows the 5W'sH of the loan source. Blame their inability to pay back  on lapo rather than given what belongs to ceasar to ceasr.

We cant blame manufacturer of Innoson motors for the recklessness and carelessness of the drivers. consequently blaming lapo and other financial institutions for their lack of financial discipline and integrity on the part of the defaulting debtors has been the recurring blackmailing and propaganda against some of  these outstanding brands.

Its a big lie from the pit of hell those claiming that nobody takes lapo loan that will achieve anything meaningfully from such facility coupled with debts because our findings revealed that several people who took the  facility bought landed properties, built 3 bed rooms flat, cars, 7 seater mini zuzu bus, tricycle and motorcycles for commercial business among others and still using their properties after offsetting their loan.

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The piece is not intended to market or demarket, encourage nor discourage  continued Lapo brand loyalty with a more flexible and long repayment plans and the improved culture of  savings and "my pikin" among others but was simply to communicate and sensitize  the general public that might be unaware of the inside story of some of the Lapo stakeholders and the first of  its kind loan repayment extension( Moratorium)  of the leading Microfinance Bank in Nigeria to their customers particular the traders and artisans that formed the chunk of the pro-poor financial institution amid covid-19 pandemic that now reduced the high  blood pressure of  pregnant women at the point of delivery  temporarily at the moment courtesy of the finance house ahead of the  covid-19 lock down relaxation  as at last month.


https://kosofepost.com/2020/05/08/covid-19-lapo-mfb-finally-enters-labour-room-since-inception/