Davodani grows business from N5.4m negative balance sheet to N10b through new business strategies

Manager Asset Finance Mr.   Otis Ehiemuan, Group Head Finance and Treasury, Mrs Cynthia Nyishagba, Managing Director/CEO, Mr John Ologe, Group Head,Business Development, Mr. Raymond Ezekwu, Group Head, Internal Control & Audit, Mr. Femi Jaleyemi 

With over a decade of banking service experience, Davodani Micro Finance Bank (MFB) based in Lagos has grown its business from N5.4m negative balance sheet when it was acquired from CALM Micro Finance Bank to a whopping N10 billion where it is now.

This revelation was made at the 6th Edition of the bank’s Save and Win promo raffle draw which took place at the Hadassah Even Centre in Ogudu, Ojota, Lagos State on Saturday, March 8, 2025.

With 11 branches across Lagos the bank has gone to another level with for Ve years plan and intention to become a regional commercial bank, the bank doled out more than N5million worth of items to lucky winners and consolatory prices for all customers at the draw.

According to John Ologe, the Managing Director of Davodani MFB, “When we started, the balance sheet was N5.4million negative when we acquired it from CAN, but over the years, we came up with new business strategy, and that balance sheet has grown to N10 billion, as of today.”

He narrated how the bank started. “The bank stated late 2014, it was known as Cam Micro Finance Bank, the original owners but a new set of investors came and acquired the license in May, 2014, with the new name, Davodani Micro Finance Bank which took of in 2015 as a unit micro finance Bank. By 2016, we then obtained a license of Micro Finance Bank, to enable us bus set up branches across Lagos State. But when we started we started from one office which is called unit micro finance Bank, but right now we are in 11 branches across Lagos State.”

He said the bank only operates in Lagos State, because what it has is a state license.

He also spoke in the business strategy that transformed the bank to where it is now. “When we started we were dealing with micro, micro, the small small businesses but as time goes on we then retuned our strategy to focus on SMEs that is the Small Medium Enterprises, and we restructured as opposed to the very micro, very disorganized businesses, so that is the model we are currently running. Our focus is to empower SMEs, who have structured businesses.”

He listed some of the business offerings by Davodani MFB which include traditional savings products, Save and Win and they receive deposits across from customers. He added that the bank also have funding partners who come to their aid when the need arises, example, he said is Development Bank of Nigeria (DBN).

On the challenges encountered by the bank, Ologe said inability to refund borrowed by customer was a big challenge even though he disclosed that such challenge has been minimized having restrategized with focus on SMEs.  “That is why I said when we started in 2015, we were still dealing with the small small businesses, who are very disorganized, so they would form themselves into groups to come and collect money, but as soon as they get the money, the group would disintegrate. Then collecting those money from them was a challenge. And that was what informed our change in business strategy, let’s deal with more structured businesses, we go to Ladipo, Alaba, Trade Fair, Arena, so this kind of businesses we identify them and give them financing support as opposed to very disorganized set of people.

“However the challenges in the economy still remains, because we have a very volatile economy, some of the government policies are changing, challenges of people not paying back when they supposed to, however, because they have organised businesses, it is easier to deal with those default, as opposed to when you deal with the smaller businesses, we have collateral we have guarantors that also help us to enforce the payments,” the MD disclosed.

He also revealed that the bank has done what he called a five year strategic focus including the plan to becoming a regional commercial bank. “The strategic focus says that Davodani intends to move from a micro finance bank to a regional commercial bank, when you become a regional commercial bank, it would enable you to do all that commercial banks do. From regional commercial bank you move to national commercial bank, and then international like UBA, Zenith, First Bank and all that but, for regional commercial bank their paid up share capital today is N50 billion by CBN, so that when you move their you can operate commercial banking within a region.”

On his message to his customers, he said “One of the beautiful thing about this, when we said we intend to move from MFB to commercial bank, we would have built a customer base like this people now, so you migrate with this people to a regional commercial bank, some people acquired regional commercial bank without having customer base, but over the past ten years we already have a customer base, so by the time we move into a regional commercial bank it would not be difficult looking for customers.”

Raymond Nnaemeka Ezekwu, the Group Head, Business Development of the bank said “Our journey in this Micro Finance Bank has been so wonderful, it has been so eventful, we marked our 10 years anniversary at Marriott Hotel Ikeja, three weeks ago, so we are in the eleventh year of operation, and from what we have done so far, I see a bank growing in size and structure.”

Speaking on the Save and Win in raffle draw, he said “I feel so excited. You see one thing is to start a thing, another thing is to see people patronize you. This is the sixth edition, we are also flagging of our seventh edition today. This product is aimed at encouraging our savings deposit customers to save for the rainy day, we have other savings products, but this special one we run it for one whole year, so by this time next year we shall be having another raffle draw, these customers save and they don’t withdraw from that account. So as I said, this is our Sixth year on the product and we see more customers taking this product. Last year when we had it, we didn’t have this number of crowd, but you can see what is happening here today, and today, they are going to go home with consolation prizes for all customers that qualified.
We are seeing this product as backbone for the bank.

On the items being given out, he said “The star prize winner goes home with 500litre deep freezer, we have gold category, we have silver category, and we have bronze category. For the gold, the winner will go with a generator, another winner there will go with a Washing machine, and another washing machine. For the silver category, we have water dispenser, and finally we have the bronze category, winners in this category will go home with gas cooker. Some are going to go home with a very enhanced blender machine.

Speaking on the total amount spend on the items for the raffle draw, Mr Ezekwu put the total sum at N5million.