NPF Microfinance Bank not for police officers alone, MD

Chief Executive Officer and Managing Director of NPF Microfinance Bank, Mr. Habeeb Yusuf, speaks with selected journalists on the activities, operations and planned expansion of the bank, as Stanley Ihedigbo reports.

Can you briefly tell us about the history and growth of NPF Microfinance Bank?

NPF Microfinance Bank started operations in 1993 with a capital base of just ₦500,000. Over the years, we expanded steadily, and by 2005, following the Central Bank of Nigeria’s microfinance policy reforms, we transformed into a National Microfinance Bank.

Today, we have about 49 branches across all state capitals in Nigeria. Our shareholders’ funds have grown to about ₦13 billion, and we are currently the only microfinance bank listed on the Nigerian Stock Exchange, which reflects our stability, transparency and strong corporate governance.

What makes NPF Microfinance Bank unique in the industry today?

We are unique in several ways. First, we are the only listed microfinance bank on the stock exchange. Secondly, in 2025, we emerged as the second-best bank in capital appreciation in the financial sector.

We also have a very wide customer base of over 1.5 million customers nationwide, supported by strong technology platforms and a nationwide presence.

There is a perception that your bank is only for police officers. Is that correct?

That perception is not correct. Although police officers own about 62% of the bank, and the Nigeria Police Insurance Scheme owns 14%, our services are open to all Nigerians.

In terms of customers, only about 45% of our salary products are patronised by police officers, while 55% are taken by civilians and other professionals. Out of our 1.5 million customers, only about 300,000 are police officers. This clearly shows that the bank is for everyone — civil servants, traders, artisans, professionals and business owners.

What range of products and services do you offer?

We offer a wide range of products, including current accounts, savings accounts, corporate accounts and salary accounts.

Our specialised savings products include:Police Officer Service Account, Kids Education Savings, We-We Account for festive planning, Better Women Savings, Edu-Finance Savings, and Halal (Non-interest) Savings for Islamic customers.

On the loan side, we provide salary-based loans, salary advances, business loans, agricultural loans, school facility loans, transport loans, micro-housing loans and LPO financing. We also provide business advisory services to help our customers grow sustainably.

Tell us more about the Better Women product. Why is it important to the bank?

Better Women is very dear to our hearts because we strongly believe that when you empower a woman, you empower the family and the nation.

Through Better Women Savings and Loans, we support women in business with one of the lowest interest rates in the bank. This product is designed to promote family stability, women entrepreneurship and poverty alleviation.

You also mentioned Halal banking. Why did you introduce it?

We introduced Halal services in response to customer demand, especially from our Muslim customers who do not want interest-based accounts.

This product allows them to save and plan for activities such as Hajj, Salah and festive periods without paying or earning interest, and with minimal transaction costs. It promotes financial inclusion and respects religious principles.

Interest rates are a major concern in microfinance. How affordable are your loans?

It is true that microfinance interest rates are generally high because the cost of funds is very high and risks are significant. However, at NPF Microfinance Bank, we pride ourselves on offering one of the lowest lending rates in the microfinance industry.

Our highest rates are usually between 3% and 6% monthly, depending on the product and risk level, which is far lower than what many microfinance banks charge. Our rates are competitive, affordable and carefully structured to support our customers.

Do you receive support from international donors or development partners?

We do not currently receive direct donor funding. In the past, we received training support from organisations such as AFOS (Germany) and Edu-Finance International for manpower development.

We have accessed intervention funds from institutions like the World Bank (housing microfinance programme), Bank of Industry, and currently the Development Bank of Nigeria. However, our core funding comes from local deposits and internally generated funds.

How accessible are your loans to junior police officers and low-income earners?

Our loans are very accessible and very affordable. Many junior officers and low-income earners have benefited from our incremental housing loans, land purchase loans and salary-based loans.

We have helped many officers buy land, build houses gradually, educate their children and secure their future before retirement. We are proud to say we have touched many lives positively.

How do you manage loan defaults and recover debts?

We have a very strong loan appraisal and monitoring system. Our non-performing loans are far below the 5% threshold approved by the Central Bank.
We prefer dialogue and restructuring when customers face genuine difficulties. We do not use brute force. However, when customers deliberately refuse to pay, we employ legal recovery methods and professional recovery agents to protect depositors’ funds.

How do you ensure the safety of customers’ deposits, especially in view of past failures in the sector?

NPF Microfinance Bank is a licensed CBN bank, a listed company, and fully regulated. Our operations are transparent, and our financial information is publicly available.
We have operated safely for over 32 years. We also pay up to 8.1% interest on savings, and fixed deposits are negotiable. Customers’ funds are safe with us.

What technology platforms do you currently operate?

We operate all modern banking channels including: Mobile App, USSD (*5757#), Internet Banking, Agency Banking, POS Services and ATMs.

Customers can open accounts online, transfer funds, pay bills and withdraw cash anywhere in Nigeria. There is no technology deployed by commercial banks today that we do not also operate.

What message do you have for Nigerians and potential customers?

My message is simple: NPF Microfinance Bank is for all Nigerians. We are safe, strong, transparent and customer-focused. Our rates are moderate, our products are inclusive, and we take the safety of customers’ funds very seriously.

We welcome salary earners, business owners, traders, professionals and entrepreneurs to bank with us.

Finally, where do you see the bank in the next five years?

In the next five years, we aim to triple our balance sheet size, expand our visibility nationwide, deepen financial inclusion and become one of the most trusted microfinance brands in Nigeria.
We want Nigerians to clearly identify NPF Microfinance Bank as a reliable partner in wealth creation, poverty alleviation and national development.