Nigeria’s micro, small, and medium enterprises (MSMEs) are set to gain new momentum following the Central Bank of Nigeria’s (CBN) approval of a finance company licence to Preferred Finance Company Limited. The Abuja-based firm aims to bridge financing gaps with tailored services for small businesses across the country.
At its official launch in Abuja, the firm’s leadership shared its vision to democratise access to capital for underserved businesses. “Preferred Finance Company Limited was founded by the visionary leadership of Guarantee Multipurpose Cooperative Society Limited, with our cooperators subscribing to 70% ownership of the company,” said Managing Director and CEO, Dr Olasehinde Sunday. He revealed that the CBN’s final licence was granted on 16 December 2024, a date which also marked his birthday.
With its newly acquired licence, the firm is set to offer a broad suite of financial solutions, including funds management, advisory services, and loan products such as asset loans, MSME support, payday loans, and education financing. The company’s roots in cooperative finance have given it a head start in understanding the credit needs of everyday Nigerians.
From Cooperative Roots to National Reach
Preferred Finance evolved from the Guarantee Multipurpose Cooperative Society, which was established in 2012. According to Board Chairman Mr Kolawole Okunato, the cooperative’s transformation into a licensed finance company represents a decade-long vision. “As we evolved, we knew our mission required a broader platform — one that could amplify our impact, connect us with more businesses, more households, and more dreams,” he said.
He acknowledged the critical role played by the CBN, stating, “To our regulators at the Central Bank of Nigeria, thank you for your support, oversight, and guidance. Your role in stabilising and deepening Nigeria’s financial space is invaluable.”
With a customer base of over 10,000 members through its parent cooperative, Preferred Finance plans to leverage digital tools and inclusive strategies to improve access to credit for Nigeria’s MSME sector. The company’s emphasis is not only on financial performance but also on community development.
“Your investment with us will not only support our growth as a finance company but it will also enable us to impact more lives in our communities,” Olasehinde noted, highlighting social projects like installing CCTV systems at Lomina Orphanage in Abuja and funding the education of 25 indigent students.
A New Era for MSME Lending
The firm’s commitment to inclusive finance is reflected in its values. “Preferred is more than just a name — it guides everything we do. It’s a promise to always put our customers first, make a positive impact in the communities where we operate, and be the trusted global leader in providing exceptional financial services,” Olasehinde said during the launch.
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[…] The Central Bank of Nigeria (CBN) has flipped its fortunes, recording a profit of N38.8 billion in 2024 after suffering a staggering N1.27 trillion loss in 2023. This turnaround is revealed in the bank’s newly released financial statements and is largely credited to major gains from financial investments and asset revaluations. […]