It is estimated by UNICEF that 71% OF Nigerians live below a dollar per day 

and 92% on 2 dollars per day. This estimate shows the high level of poverty 

in the country. The social responsibility of any microfinance bank is to help 

alleviate poverty by filling the void created by conventional banks through 

provision of broad range of finance (ranging from savings to micro loans) to 

the under-banked, people with little or no access to proper financing.

The microfinance Industry in Nigeria has grown rapidly, with more than 1,000

licensed microfinance banks plying their trades across the nation.

The total micro and SME loans are estimated to be more than N195 billion 

(USD541.67 million).

CBN estimates the total outstanding loans to be N183.96 billion (USD 511 

million) as at December 2016.

This write-up would highlight the history, the regulations, the challenges, the 

market growth, portfolio performance and the competition as it relates to the

microfinance industry in Nigeria.