Lovonus Targets Value-chain Financing, Digital Expansion for Growth

Nume Ekeghe

Lovonus Microfinance Bank is positioning value-chain financing and digital expansion as the twin pillars of its next growth phase, as it navigates a challenging macroeconomic environment and rising pressure on microfinance operators.

Managing Director and Chief Executive Officer, Adeola Ayibiowu, in a statement noted that the bank is prioritising financing along trade and agriculture-linked value chains, where structured cashflows and clustered activities offer stronger risk management and more sustainable returns. He noted that focusing on economically active clusters allows the bank to support productive enterprises while preserving asset quality.

Ayibiowu said Lovonus will also deepen its use of digital channels to improve customer onboarding, loan processing and repayment efficiency, describing technology as an operational enabler rather than a branding exercise. According to him, increased digital adoption is helping to lower service costs, shorten turnaround time and improve the overall customer experience, particularly for micro and small businesses with limited access to physical branches.

He added that youth- and women-led enterprises remain a core focus of the bank’s strategy, noting that these segments are often underserved despite their strong contribution to grassroots economic activity. The bank plans to scale support for such businesses through tailored products, cooperative-based lending structures and partnership-led outreach.

It states: “Looking ahead, Ayibiowu identified value-chain financing, particularly within trade and agriculture-linked clusters, as a major growth opportunity for the bank. He also pointed to youth- and women-focused enterprise financing, as well as agency and partnership-led expansion, as more sustainable pathways than costly brick-and-mortar growth. Geographically, he said targeted expansion within economically active corridors makes more sense than aggressive nationwide spread, arguing that growth in the current climate must be selective and deliberate.”