EHIGIAMUSOE’S INSIGHTS FOR BUSINESS OWNERS

Godwin Ehigiamusoe’s “Twelve Commandments” is a guide from a man who has lived the principles he espouses, writes Peter K. Odeka

In the ever-evolving landscape of Nigerian business, known for its great prospects as well as considerable challenges, few individuals boast a track record of success and authority like Godwin Ehigiamusoe. The chairman of LAPO Microfinance Bank (LAPO MfB) and the mastermind behind the LAPO Group, Ehigiamusoe has been a pivotal figure in Nigeria’s socio-economic development for over four decades. The LAPO Group, which essentially started in the 1980s has since spawned many reputable subsidiaries like LAPO MfB, the LAPO Institute for Microfinance and Management Studies, Benin Medical Center, the LAPO Agricultural and Rural Development Initiative, and Goxi Micro-insurance, among others. Its most popular subsidiary, LAPO MfB, operates in over 536 locations across Nigeria, employs over 7,000 people, and is one of the country’s top five employers, evidence of Ehigiamusoe’s visionary leadership.

Being the brain behind Nigeria’s largest microfinance bank, which has supported countless small business owners with sustainable finance, training, and other key services, makes Ehigiamusoe a leading authority on business. His latest book, “Twelve Commandments for Business Owners,” is a testament to his profound understanding of what it takes to succeed in business. This book is not just a collection of principles but a reflection of the wisdom he has garnered over decades of leading one of Nigeria’s most impactful social enterprises.

In the book, Ehigiamusoe distills his extensive experience into actionable insights. Each chapter is a commandment that provides a roadmap for entrepreneurs at any stage of their journey. These principles are vividly exemplified by LAPO MfB and the other subsidiaries within the group.

In the first chapter, titled “Know Yourself,” Ehigiamusoe emphasizes self-awareness as the cornerstone of business success, advising entrepreneurs to understand their strengths and weaknesses and to fill gaps honestly. His record shows that he walks his talk. LAPO MfB’s unwavering dedication to its niche of providing sustainable and innovative finance to low-income earners, more than forty years since Ehigiamusoe’s thirty Naira loan disbursement to market women, points to an acute self-awareness. LAPO MfB’s understanding of the banking needs of low-income earners and the financial behaviors of local communities has been crucial to the institution’s success. Historically, low-income earners in Nigeria have limited access to finance and rely on microfinance banks for loans and other financial support. This self-awareness allows the organization to tailor its services effectively, ensuring they meet their clients’ unique requirements. LAPO provides a variety of strategic loan products tailored to the different needs of small and medium enterprises, including agricultural, educational, and loans for women entrepreneurs.

Chapter 5: Always Do It Right. LAPO’s solid reputation would not be sustainable without integrity and ethical practices – key recommendations of the fifth chapter titled “Always Do It Right.” LAPO’s commitment to transparent operations and ethical lending practices has earned it a reputation for reliability and trustworthiness. For instance, LAPO’s adherence to ethical lending standards ensures that clients are treated fairly and with respect, fostering trust and loyalty.

In Chapter 7: Plan, Plan and Execute, Ehigiamusoe stresses the importance of planning and execution. LAPO MfB’s growth trajectory and operational effectiveness are evidence of meticulous strategic planning and the effective execution of these plans. For example, LAPO’s strategic initiatives to expand its branch network ensure close proximity to its customers, and the advancement of its digital services were undoubtedly the result of thorough planning and execution, leading to increased accessibility and convenience for clients.

Ehigiamusoe also states in the book that consistent hard work and resilience are essential, in Chapter 8: Be Diligent and Resilient. LAPO’s journey, especially during economic downturns, highlights the importance of perseverance. The bank’s steadfast support for its customers in spite of the COVID-19 pandemic is an excellent example of its resilience in the face of tough times. Not only did LAPO MfB provide financial and social support to its customers, but it also managed to survive the economic challenges faced by financial institutions themselves. The organization’s ability to adapt and remain steadfast in its mission during challenging times underscores this commandment. During periods of economic instability, LAPO’s resilient approach enabled it to continue providing essential financial services to its clients, demonstrating the value of diligence and resilience.

While small businesses are beautiful, scaling up creates greater value and resilience, Ehigiamusoe advises in Chapter 10: Desire to Scale Up. LAPO’s transition from a small community initiative to a large-scale microfinance institution illustrates the benefits of strategic scaling. This growth has amplified its impact, reaching more beneficiaries across Nigeria. For instance, LAPO’s expansion into multiple states and the introduction of various financial products have significantly increased its client base and financial inclusion efforts.

Chapter 11: Go Beyond Yourself: Institutionalise, emphasizes that building businesses that can sustain themselves independently of the founder is crucial. Ehigiamusoe has ensured that LAPO’s structures and systems are robust, allowing the organization to thrive beyond his personal involvement. This institutionalization ensures continuity and long-term success. For example, LAPO’s establishment of a strong governance framework and succession planning has enabled the organization to maintain its mission and operations effectively, even as leadership transitions.

Not only has Ehigiamusoe provided guidance through the pages of this book, but he also offers inspiration through the sheer impact of his endeavors. He has led the LAPO Group in providing financial services to over five million beneficiaries across Nigeria, with a loan portfolio exceeding $400 million. His vision to lift those at the lower end of the economic spectrum has been the driving force behind LAPO’s success. From providing low-interest loans to pioneering comprehensive poverty alleviation strategies, Ehigiamusoe’s work has been transformative. His recognition by the Chartered Institute of Bankers of Nigeria as a Fellow underscores his contributions to building robust corporate frameworks that support social enterprise. Under his leadership, LAPO Microfinance Bank has twice successfully navigated the capital market, reflecting the strong confidence in its mission and operations.

Godwin Ehigiamusoe’s “Twelve Commandments for Business Owners” is more than a book; it is a guide from a man who has lived the principles he espouses. His track record with LAPO Group stands as a testament to the efficacy of his personal business philosophy. For business owners and aspiring entrepreneurs, this book offers invaluable insights from a leader whose vision and actions have significantly shaped Nigeria’s socio-economic landscape.

Odeka is a public affairs analyst