By Babajide Komolafe

Alert Microfinance Bank has recorded a 20-fold increase in total assets to N50 billion in three years, as rising inflation, naira depreciation and stronger demand for credit reshape Nigeria’s banking landscape.

Speaking in a media interview, Group Chief Executive Officer of Alert Group, Mr. Olanrewaju Kazeem, said the bank’s growth was driven by a deliberate strategy focused on financial inclusion and nationwide expansion following the Central Bank of Nigeria’s approval of a national microfinance banking licence.

According to him, “The growth that you see in Alert Microfinance Bank and Alert Group as a whole is a deliberate plan to ensure that we are able to deliver quality service and extend our services to as many Nigerians as possible. Today, the Group has total assets of about N120 billion, while Alert Microfinance Bank has about N50 billion, from about N2.5 billion three years ago.”

He added: “The need for us to extend our services to other parts of the country where there is yearning for such services, particularly by improving financial inclusion and supporting the underbanked and unbanked, is what is driving us. We have also seen strong acceptance of the brand, making expansion across Nigeria very compelling.”

On operating challenges, Kazeem said: “The industry is still relatively young and getting quality personnel to execute our plans and strategy remains very challenging. In addition, with the Monetary Policy Rate at 26.5 per cent, you can imagine the cost of funds we use for business. When you add operating costs, the cost of credit becomes very high.”

Kazeem further disclosed that inflation forced the bank to review staff salaries four times last year. “Sometimes you have to go beyond your budget to retain critical staff because of prevailing macroeconomic realities,” he said. Despite these pressures, he said the reforms have created opportunities. “As prices rise, businesses require more working capital to restock, so demand for credit naturally goes up.

He added: “Our deposits have grown by more than 200 per cent annually over the last two years. People are saving more, while our growth strategy is delivering exactly as planned as we prepare for regional expansion across Africa.”