Alitheia Capital and Goodwell Investments announced their successful exit from Baobab Nigeria, highlighting over a decade of growth in inclusive banking services for underserved communities in Nigeria.

Information on the Target

Baobab Nigeria, a prominent financial institution, is committed to delivering inclusive banking services to individuals and micro, small, and medium enterprises (MSMEs) in underserved regions of sub-Saharan Africa. Having begun its journey as MicroCred, the institution has expanded significantly since 2012, transitioning from a single operating state in Kaduna to a nationwide presence across 16 states in Nigeria. With the support of investors Alitheia Capital and Goodwell Investments, Baobab Nigeria has transformed from serving merely 19,000 customers through five branches to a substantial customer base of 230,000 served through 38 branches. Their focus remains on maintaining small average loan and deposit sizes, reinforcing their commitment to inclusivity.

Industry Overview in Nigeria

The financial services industry in Nigeria has experienced notable growth over recent years, although challenges in access to financial services persist, especially in the northern regions. As of 2023, approximately 26% of the Nigerian population still lacked access to essential financial services. Despite this, companies like Baobab are playing a vital role in addressing these gaps, offering opportunities for underserved populations. This shift is significant, considering that up to 70% of the population was unbanked a decade ago.

The regulatory landscape is also evolving, with the Nigerian government increasingly emphasizing financial inclusion as part of developmental policy. This has spurred innovations and investments targeting the un