LAPO advocates institutional reforms for microfinance growth

Godwin Ehigiamusoe, Founder of LAPO, emphasized during the 2nd Annual Microfinance Leadership Roundtable in Lagos that microfinance institutions must undergo significant structural changes to transition into large-scale financial institutions. He urged managing directors, CEOs, board members, and senior executives from Nigeria's microfinance sector to shift from incremental growth to visionary leadership, stating that "small is beautiful, but big creates greater value."

Ehigiamusoe stressed that microfinance banks become truly great through deliberate strategy, sound governance, and disciplined execution. He identified leadership mindset and legacy operational structures as primary barriers to expansion, urging leaders to strengthen core pillars such as governance, financial controls, risk management, human capital, and technology.

He recommended conducting independent diagnostic reviews to identify and fix systemic weaknesses, noting that such exercises help pinpoint necessary growth steps. Ehigiamusoe assured that ready institutional frameworks attract the capital required for expansion, as funds naturally follow institutions with sound governance, effective management, and superior performance.

He cited LAPO's transformation as evidence, sharing how structural reforms helped the institution become a benchmark by inviting MicroRate USA for an institutional review, implementing necessary changes, and developing a growth plan. Ehigiamusoe concluded by stressing that building large-scale microfinance banks is crucial for national economic development, as they can generate sustainable mass employment and contribute meaningfully to public revenue.