* We started as a unit MFB, now targeting State banking status – MD Agboola
One of Nigeria’s leading Islamic microfinance banks, Al-Barakah Microfinance Bank, has recorded significant growth in earnings, investment and profitability despite the country’s challenging economic environment, with Managing Director, Mr Rasak Tunde Agboola, declaring that the institution is preparing to expand from a unit Microfinance Bank into a State Microfinance Bnk.
Mr Agboola disclosed this on Saturday, August 15, 2026, at the bank’s Annual Stakeholders’ Meeting held at Hajj Mabrur Ventures Limited’s Hall, Idiroko, Lagos, where the institution reviewed its performance for the 2024 and 2025 financial years.
He said the bank had remained resilient despite the difficult economic environment and was now focused on consolidating its gains, widening financial inclusion, strengthening digital services and expanding its reach.
Earnings, investment and profit rise
The financial report presented at the meeting showed that Al-Barakah’s gross earnings rose from N198.742 million in 2024 to N232.412 million in 2025.
Its investment portfolio also increased from N352 million to N499.9 million during the period, while profit after tax climbed from N34.12 million in 2024 to N43.853 million in 2025.
Muslim News gathered that the two years therefore produced a combined profit after tax of N77.973 million.
Mr. Agboola said the figures reflected the bank’s progress despite the economic pressures affecting businesses across the country.
Shareholders get five kobo dividend, bonus shares
As part of the outcome of the meeting, the bank declared a dividend of five kobo per share to shareholders.
Stakeholder approved a bonus arrangement under which shareholders would receive one additional share for every 10 shares held.
The dividend and bonus shares were presented as part of the benefits accruing to shareholders from the bank’s improved performance.
Over N5.5bn financing reaches small businesses
Mr. Agboola said the bank had provided more than N5.5 billion in financing to small businesses, SMEs and other low income entrepreneurs.
He said the institution’s role was not limited to giving customers funds, knowing that it also monitored businesses, assessed proposals and provided financial and strategic advice.
According to him, the bank was interested in the growth and sustainability of businesses financed through its platforms.
He said the approach was aimed at helping entrepreneurs improve profitability and expand their businesses.
Highlights grassroots financing
The Managing Director said rising living costs had made access to appropriate financing increasingly important, particularly for low income earners.
He said Al-Barakah Microfinance Bank could work with people who already had businesses by providing financing and monitoring their operations.
He added that prospective customers could also receive assistance with business proposals and guidance on how to improve their enterprises.
Mr. Agboola said such interventions were important because low income earners were often the first to feel the impact of economic difficulties.
Low income earners need greater support
Mr. Agboola said low income Nigerians were among those most affected by economic downturns and rising living costs.
He said Al-Barakah would continue to seek ways of providing financing and other forms of support to entrepreneurs and individuals at the grassroots.
He explained that the bank could partner with people who had viable businesses, provide financing and subsequently monitor the businesses to improve their chances of success.
He said the bank’s financing model was designed to make customers partners in their economic development rather than simply treating them as borrowers.
Economic reforms create difficult operating environment
Reflecting on the two financial years, Mr. Agboola said businesses operated under significant pressure following the removal of fuel subsidy, foreign exchange reforms, high inflation, insecurity, kidnapping and banditry.
He said the weakening of the naira, rising cost of doing business and increasing unemployment also affected the purchasing power of Nigerians.
According to him, the combined impact of these factors made it difficult for many businesses to survive and placed a disproportionate burden on low income households.
However, he said the economy showed signs of stabilisation towards the last quarter of 2025, supported by stronger revenue mobilisation, improved government revenue allocation, subsidy savings and tax reforms.
Mr. Agboola also identified financial technology as an important driver of financial inclusion, particularly in reaching unbanked Nigerians, rural communities and underserved sectors.
Digitalisation drives next phase of growth
Mr. Agboola said digital transformation would be one of the major priorities of Al Barakah Microfinance Bank over the next three to five years.
He said the bank wanted customers to conduct more transactions from the convenience of their homes and business locations.
The proposed expansion would include transfers, bill payments and other banking transactions, with the aim of reducing dependence on physical branches.
He said digitalisation would also improve efficiency and enable the bank to serve a larger customer base.
Bank targets state and national expansion
The Managing Director said Al-Barakah was also planning geographical expansion. He explained that the institution intended to move from its current local government level operations to state and eventually national operations.
According to him, the expansion would be accompanied by stronger systems, improved technology and continued adherence to ethical and transparent banking.
He said the long term ambition was to build an institution capable of serving Nigerians across the country while retaining its Islamic financial identity.
Prof Idowu commends bank’s performance
An Independent Director of Al Barakah Microfinance Bank, Prof Khadijah Idowu, described the institution’s performance as encouraging, saying it had recorded steady and consistent improvement in both financial and non financial indicators over the past two years.
Idowu, who gave her assessment after the Annual Stakeholders’ Meeting, said the event was well attended physically and virtually, reflecting the confidence stakeholders had in the institution.
She said the financial records presented at the meeting, including the five year performance summary from 2024 to 2025, showed that Al-Barakah had maintained a positive growth trajectory despite current economic challenges in the country.
“Al-Barakah has been steadily and consistently improving in its performance, financial performance and non financial performance,” she said.
According to her, the bank’s ability to sustain growth over several years demonstrates sound management, prudent financial practices and the support of shareholders and customers.
She expressed optimism that the institution would continue to perform better in the coming years. “We hope that the future is going to be brighter and better,” she said.
Prof Idowu urged shareholders and other stakeholders to remain committed to the institution as the microfinance banking sector prepares for possible recapitalisation and changes in regulatory requirements.
She said indications from regulators suggest that microfinance banks may be required to strengthen their capital base and customer deposit levels in the near future.
According to her, stakeholders should be prepared to support Al Barakah whenever the need arises.
“It is our bank and it has been performing, and we should be ready to support,” she said.
She noted that shareholders who currently own shares in the bank should consider increasing their investments as part of efforts to strengthen the institution for future growth.
First TMC Amir celebrates Al-Barakah’s growth, transformation
The First Amir of The Muslim Congress (TMC), Alhaji Abdulrazaq Abdussalam, expressed excitement over the growth of the bank since its establishment in 2010, describing its transformation from a cooperative into a microfinance bank as a significant achievement.
He said the bank, founded by the organisation to provide interest-free banking services, had continued to grow in strength, expressing optimism that it would soon progress from its present status as a small bank into a national financial institution.
Alhaji Abdussalam said Al-Barakah could play an important role in helping ordinary Nigerians cope with the rising cost of living by providing financing and business support to low income earners and entrepreneurs.
He explained that the bank could partner with people who are already engaged in businesses, provide them with financing and monitor their operations to help ensure that the funds are properly utilised.
According to him, the bank could also assist customers by reviewing business proposals and offering guidance on how to improve their enterprises.
He said such support was particularly important because low income earners were often the most affected whenever the country experienced economic difficulties.
“There are so many areas where we can be of assistance to all these low level income earners, and they are the ones feeling the pain each time there is an economic problem in the country,” he said.
Alhaji Abdussalam urged Nigerians to remain informed about developments in the country and to look out for legitimate opportunities through which they could improve their economic circumstances.
He said Nigerians should not assume that the current economic difficulties represented the end of the country’s prospects, but should instead seek opportunities that could help them survive and improve their livelihoods.
“The present economic challenge is not the end of Nigeria. People need to know where they can fulfil themselves of opportunities that will make them survive the hardship,” he said.
Prince Olagunju praises bank’s performance, urges stronger technology
A Director of the bank, Prince Sulaiman Olagunju, expressed satisfaction with the bank’s performance, particularly considering its capital base, saying shareholders were encouraged by the institution’s progress.
“Al-Barakah is doing fine, considering the capital base of the bank. So we shareholders are very happy for the performance and they can still do much better, but so far so good,” Prince Olagunju said.
He, however, urged the management to give greater attention to information technology, saying improved digital services would make banking more convenient for customers and strengthen the institution’s competitiveness.
“We want people to be able to do their business without visiting the bank,” he said.
Prince Olagunju also highlighted Al Barakah’s role in serving Nigerians who prefer interest free financial services, saying the bank had provided an avenue for people who were reluctant to patronise conventional banks because of interest.
“You know people are concerned about not eating haram. They are patronising Al Barakah. Those who have love for zero interest are patronising Al-Barakah,” he said.
He said the bank was helping to bring such Nigerians into the formal financial system while serving them in accordance with their financial preferences.
Prince Olagunju acknowledged the impact Al Barakah was already making but urged the management to expand its reach and do more to meet the needs of its growing customer base.
The Annual Stakeholders’ Meeting provided an opportunity for the board, management, shareholders and other stakeholders to assess the bank’s performance and future direction.
Sponsored
Nigerian Muslim Personalities of the Year 2024/2025
Global Muslim Personalities of the Year 2024/2025
