In a move aimed at deepening Nigeria’s financial inclusion and expanding access to credit for underserved enterprises, the Central Bank of Nigeria (CBN) has officially granted a finance company licence to Preferred Finance Company Limited. The newly licensed institution is poised to provide structured financing solutions to micro, small, and medium-sized enterprises (MSMEs) across the country, helping to address long-standing barriers to capital for this critical sector.

The licence was formally celebrated at the company’s launch event in Abuja, where executives highlighted their mission to offer regulated, innovative, and inclusive financial services that promote socio-economic transformation.

Dr. Olasehinde Sunday, Managing Director and Chief Executive Officer of Preferred Finance, described the CBN licence as a significant regulatory milestone, marking the company’s evolution from a cooperative society into a full-fledged financial services provider.

“This is more than just the birth of another finance company—it’s the continuation of a vision rooted in inclusion, integrity, and impact,” he said. “Receiving our final licence from the CBN on December 16, 2024, gave us the mandate to empower communities, drive financial literacy, and support MSME growth through compliant, technology-driven financial solutions.”

The finance company was founded by Guarantee Multipurpose Cooperative Society Limited, whose members retain a 70% stake, reflecting a community-based ownership structure. With over a decade of grassroots experience, the transition to a licensed finance company allows Preferred to operate within Nigeria’s formal regulatory framework, guided by strong corporate governance, compliance structures, and risk management protocols.

As part of its service offering, Preferred Finance will provide Funds Management, Structured Finance, Financial Advisory, and a range of loan products including MSME loans, personal loans, contract financing, LPO funding, asset acquisition, education loans, and payday advances. These services are expected to bolster access to regulatory-compliant financing tools for Nigeria’s small business ecosystem.

“Our mission is clear — to bridge the finance gap for entrepreneurs and small businesses by building trust, leveraging digital finance infrastructure, and operating within a transparent, inclusive regulatory framework,” said Dr. Olasehinde.

The firm is also positioning itself as a socially responsible lender. Early initiatives include the installation of CCTV surveillance systems at Lomina Orphanage in Abuja and the sponsorship of school fees for 25 indigent students, demonstrating its commitment to community development as part of its Environmental, Social, and Governance (ESG) values.

Mr. Kolawole Okunato, Chairman of the Board of Directors, traced the firm’s roots to the founding of Guarantee Multipurpose Cooperative Society in 2012 and described the company’s CBN licensing journey as one of resilience, regulatory compliance, and visionary leadership.

“Securing a Finance Company Licence from the CBN is not merely a corporate success—it reflects the power of regulatory oversight in enabling innovation while maintaining market integrity,” Okunato said. “We thank the Central Bank for their support, and for their continued role in stabilizing Nigeria’s financial sector.”

With over 10,000 cooperative members, Preferred Finance plans to scale its services nationwide by leveraging compliance automation, digital onboarding, and risk-based lending strategies to better serve Nigeria’s underserved MSME sector—an engine of employment and economic diversification.

As Nigeria’s regulatory ecosystem evolves, the CBN’s licensing of Preferred Finance highlights the growing importance of regulatory technology solutions, compliance consulting, and financial crime prevention frameworks in enabling responsible credit delivery to businesses at the base of the economic pyramid.