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Enhancing Financial Innovation and Access (EFInA) has approved a $250,000 grant for Lotus Capital, a pioneer provider of non-interest financial services in Nigeria, to support the company’s non-interest health and savings plan for low-income Nigerians.

According to a statement by EFInA on Friday, the “technical assistance grant” will support the “Lotus Health is Wealth Savings Plan,” which provides a non-interest, fixed income savings product offering health insurance for traders, market associations, religious associations, service companies, and women pressure groups.

“The EFInA Access to Financial Services in Nigeria 2014 survey revealed that 16.8 million adults, representing 18 percent of the adult population, who do not use non-interest banking products stated that they are likely to take up such products if they are readily available,” said Chidinma Lawanson, EFInA’s CEO. “The Lotus Health is Wealth products add to the diversity and range of affordable financial products to low and middle income segments of the population who may be unbanked and under-banked.”

Lawanson said EFInA’s 2014 survey also revealed that only one million adults in Nigeria, representing 1.1 percent of the total adult population, have insurance, while 14.3 million adults, representing 15.3 percent of the adult population, stated that they would be interested in micro insurance products, if made available.

“Through the Project, Lotus Capital will drive awareness on non-interest finance and enhance financial literacy among the low income targets given that the company’s direct sales agent will interface with customers to showcase the product,” added the CEO of EFInA, which promotes financial inclusion in Nigeria.

The Lotus project collects monthly deposits from customers, which will be invested in non-interest, low-risk instruments, and non-interest fixed-term investments to give the customers returns on their savings. A small portion of the customers’ deposits will be allocated to pay the monthly premiums for health insurance. The project will be piloted in Lagos, Abuja, and Kano States.

“Through this project, we hope to encourage the development of an investment culture among the low income and financially excluded segment of the population,” said Hajara Adeola, Lotus Capital’s CEO. “The Plan’s tie-in with health insurance is intentional as we believe that a healthy body is essential to creating and sustaining wealth.”

Founded in 2004, Lotus Capital specialises in Shariah-compliant asset management, private wealth management, and financial advisory services. Fola Adeola, a former Managing Director of Guaranty Trust Bank, is the Chairman of Lotus Capital.

“Our vision is a Nigeria where Nigerians regardless of their position on the economic or social ladder will have access to formal financial services and quality healthcare,” Adeola said. “The project is expected to deepen financial inclusion by broadening the array of non-interest products available to the banked, unbanked and under-banked population.”

EFInA is funded by the UK’s Department for International Development (DFID) and the Bill and Melinda Gates Foundation.