Internationalisation of Nigerian Microfinance Institutions: Opportunities and Regulatory Challenges

This study investigates the internationalisation prospects of Nigerian microfinance institutions (MFIs) and the regulatory challenges they face in expanding across West African borders. Nigerian MFIs have developed substantial operational expertise in serving low-income and unbanked populations in diverse geographic contexts, and the growing demand for financial inclusion services across the ECOWAS region presents internationalisation opportunities. However, cross-border financial services expansion involves navigating complex banking licensing regimes, anti-money laundering requirements, and varying consumer protection frameworks across multiple national jurisdictions. The research employs a professional practice research design combining semi-structured interviews with executives from 12 licensed Nigerian MFIs and officials from the Central Bank of Nigeria, the ECOWAS Banking Supervision Commission, and the Alliance for Financial Inclusion. Thematic analysis and comparative regulatory analysis are applied. The theoretical framework draws on the Uppsala model of internationalisation and the institutional theory of financial services regulation. The study examines the motivations for international expansion, the regulatory compliance requirements in target ECOWAS markets, the strategic entry modes available to MFIs, and the operational adaptations required to serve financially excluded populations in different country contexts. Findings are expected to reveal that fragmented regulatory frameworks and high licensing costs are major barriers to ECOWAS market entry for Nigerian MFIs. Recommendations include advocacy for a harmonised ECOWAS microfinance licensing framework and technical assistance from the CBN in supporting Nigerian MFI internationalisation. Keywords: microfinance, internationalisation, ECOWAS, financial inclusion, regulatory challenges