Following improved earnings, investments and profitability recorded in the 2024 and 2025 financial years, Al-Barakah Microfinance Bank, has announced plans to expand from a unit Microfinance Bank to a State Microfinance Bank.
Its Managing Director, Rasak Agboola, stated this, at the Annual Stakeholders’ Meeting held at Hajj Mabrur Ventures Limited’s Hall, Idiroko, Lagos. He said the Islamic financial institution had remained resilient despite prevailing economic challenges and was focused on expanding financial inclusion, strengthening digital services and widening its operational reach.
According to the financial report presented at the meeting, the bank’s gross earnings increased from N198.742 million in 2024 to N232.412 million in 2025, while its investment portfolio rose from N352 million to N499.9 million. Profit after tax also grew from N34.12 million to N43.853 million, giving a combined profit of N77.973 million for the two years.
As part of the benefits of the improved performance, shareholders approved a dividend of five kobo per share and a bonus arrangement of one additional share for every 10 shares held. Agboola said the bank had also provided more than N5.5 billion in financing to small businesses, SMEs and low-income entrepreneurs, stressing that beneficiaries were supported with business monitoring and financial advice.
The managing director said the bank’s financing model was designed to support sustainable businesses rather than merely provide funds. He noted that low-income earners were among the worst affected by rising living costs and economic pressures, adding that Al-Barakah would continue to provide financing and business guidance to entrepreneurs at the grassroots.
Agboola said the removal of fuel subsidy, foreign exchange reforms, high inflation, insecurity, unemployment and the depreciation of the naira had created a difficult operating environment for businesses during the period under review. He, however, said signs of economic stabilisation emerged towards the end of 2025, while identifying financial technology as a key tool for expanding access to banking services among unbanked and underserved Nigerians.
He noted that digital transformation would remain a major priority over the next three to five years, with the bank seeking to enable customers to conduct transfers, bill payments and other transactions without visiting physical branches. He said the expansion strategy would be supported by stronger systems, improved technology and adherence to ethical and transparent Islamic banking principles, with the long-term objective of attaining national coverage.
An Independent Director of the bank, Prof Khadijah Idowu, described its performance as encouraging, saying the institution had recorded steady improvement in both financial and non-financial indicators. She urged shareholders to remain committed and be prepared to support the bank as the microfinance banking sector faces possible recapitalisation and changing regulatory requirements.
The First Amir of The Muslim Congress (TMC), Alhaji Abdulrazaq Abdussalam, who commended the bank’s transformation since its establishment in 2010, said Al-Barakah could play a greater role in helping Nigerians cope with economic hardship through interest-free financing and business support.
A director of the bank, Prince Sulaiman Olagunju, also praised its performance but urged management to accelerate investment in information technology, saying stronger digital services would enable customers to transact conveniently without visiting the bank.