Nigeria WASH Loans: 70% Lack Access – LAPO Report
A new report reveals over 70% of Nigerian families lack access to affordable WASH loans, hindering their access to essential water, sanitation, and hygiene facilities. LAPO Microfinance Bank is stepping in to bridge this critical financing gap with a dedicated WASH loan program. The program aims to empower families and improve their living conditions. The recent WASH Market Research Survey, which covered multiple states, highlighted significant service gaps and the urgent need for microfinance.Targeted loans, coupled with support for WASH businesses, will be piloted. News Directory 3 remains committed to bringing you the latest developments impacting communities. Discover what’s next as LAPO expands its mission of financial inclusion.
LAPO Microfinance Bank Tackles Nigeria‘s WASH Financing Gap
Lagos,Nigeria – A recent study by LAPO Microfinance Bank reveals that more than 70 percent of Nigerian families struggle to secure affordable loans for essential water,sanitation,and hygiene (WASH) facilities. The bank presented these findings at a workshop in Lagos on Tuesday, engaging stakeholders from progress, finance, and research sectors.
Cynthia Ikponmwosa, managing director of LAPO Microfinance Bank, emphasized the bank’s commitment to bridging the WASH financing gap. The bank’s WASH loan program aims to empower families to invest in facilities that improve their lives, she said.
Evbuomwan Efosa, head of research and business development at LAPO, presented the WASH Market Research Survey, which covered Anambra, Edo, Kano, Lagos, Nasarawa, and Taraba. The survey included interviews with 1,500 households and 600 small and medium enterprises (SMEs) in the WASH sector.the research highlighted the importance of microfinance in improving hygiene, especially for women-lead businesses and homes, Efosa said.
The report also exposed significant service gaps: 78 percent of homes need toilet facilities, 65 percent lack clean water, and 52 percent lack proper hygiene infrastructure. The situation is particularly dire in taraba, Kano, and Nasarawa, where clean water access falls to 35-61 percent and open defecation exceeds 43 percent.
The survey indicated a preference for small loans below 500,000 naira, with annual interest rates of 12–15 percent and repayment periods of 12–24 months. However,60 percent of respondents were unaware of WASH-specific loans.Businesses in the WASH sector, such as water vendors and sanitary service providers, expressed a strong need for collateral-free loans above 1 million naira, along with technical support.
To address these challenges, LAPO Microfinance Bank plans to launch a pilot program offering small household loans of 100,000 to 200,000 naira in Taraba and Nasarawa. The bank also intends to expand financing for small businesses through group borrowing models and partnerships with market associations and religious institutions.
Gilbert Okpono, senior account partnership manager at Water.org, lauded the collaboration as a prime example of sustainable financing. “This underscores our shared values — improving lives and protecting the environment by offering financial opportunities to underserved peopel,” Okpono said.
What’s next
LAPO Microfinance Bank will continue its 30-year mission to empower low-income families and small businesses through financial services that drive development and reduce poverty. The workshop concluded with discussions on scaling up financing, leveraging digital financial solutions, and enhancing data collection to inform policy decisions regarding access to water and sanitation.