LAPO Microfinance Bank is addressing Nigeria’s education financing gap with a suite of EduFinance loan products designed to support low-income families and private school proprietors. The initiative comes amid rising concerns over the affordability of education and financial exclusion in underserved communities.

The bank’s EduFinance portfolio includes School Improvement Loans, tailored to help school owners upgrade facilities and expand operations, and School Fees Loans, which enable parents to spread tuition payments over time. The intervention is a response to growing challenges in a sector where, according to UNESCO, over 20 million Nigerian children remain out of school—the highest number globally.

“Access to finance remains one of the biggest barriers to education in underserved communities,” said Oluremi Akande, Director of Marketing and Corporate Communication at LAPO Microfinance Bank. “We designed these products not just to support education, but to empower families and school owners with dignity and flexibility.”

LAPO’s School Improvement Loan offers up to ₦50 million to help proprietors renovate classrooms, purchase educational tools, and boost enrollment capacity. The School Fees Loan provides up to ₦100,000 for parents, structured with interest rates between 3% and 5% per month, markedly lower than informal lending options, which can exceed 20% monthly.

The programme has already disbursed over ₦4 billion, reaching more than 45,000 students and 3,800 school proprietors across Nigeria.

In Kaduna, Hafsat Danladi, a petty trader and mother of five, recounted how a LAPO School Fees Loan helped keep her sons in school after her husband lost his job. “We were struggling to meet up. The school was about to send them home. LAPO came in just in time,” she said.

Lilian Ehigiamusoe, Executive Director of Operations at LAPO, emphasized the model’s broader impact. “A significant percentage of our school proprietors are women. When you empower women to run schools effectively, you’re not just improving education—you’re transforming communities.”

According to a 2023 report by Enhancing Financial Innovation and Access (EFInA), while 64% of Nigerian adults are financially included, many remain underserved in terms of education-specific credit. LAPO’s EduFinance model is helping to close this gap while supporting Sustainable Development Goal 4 on inclusive and equitable quality education.

The programme employs responsible lending practices and community trust mechanisms, offering flexible repayment plans and faster access to funds than traditional banks. By helping parents and school owners avoid predatory lenders, the bank also contributes to long-term financial resilience.

As inflation and economic shocks continue to pressure Nigerian households, LAPO Microfinance Bank’s education-focused financing is being recognised not just as a stop-gap solution, but as a sustainable pathway to educational equity and community development.