{"id":7063,"date":"2026-06-19T17:55:08","date_gmt":"2026-06-19T17:55:08","guid":{"rendered":"https:\/\/stakebridgeirpr.com\/media\/?p=7063"},"modified":"2026-06-19T17:55:08","modified_gmt":"2026-06-19T17:55:08","slug":"only-6-of-nigerians-access-formal-credit-report-shows","status":"publish","type":"post","link":"https:\/\/stakebridgeirpr.com\/media\/only-6-of-nigerians-access-formal-credit-report-shows\/","title":{"rendered":"Only 6% of Nigerians Access Formal Credit, Report Shows"},"content":{"rendered":"

By Kingsley Ani<\/strong><\/p>\n

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Credit Direct\u2019s Nigeria Credit Landscape Report 2025, published in June 2026, revealed that despite financial inclusion exceeding 64 percent of adults, only about six percent of Nigerians access credit through formal financial institutions. The report found private sector credit at 13.1 percent of Gross Domestic Product (GDP), below comparable African economies, while Microfinance Banks account for only 5.4 percent of total industry loans. Responding to the findings, Mutual Benefits Assurance Plc and Mutual Microfinance Bank argued for a broader financial inclusion model combining credit, savings and insurance protection.<\/p>\n

DECISION HIGHLIGHT<\/strong><\/p>\n

The report highlights a structural disconnect between financial inclusion and financial intermediation, suggesting that account ownership has expanded faster than access to productive credit.<\/p>\n

DECISION MEMO <\/strong><\/p>\n

The central message from the report is that Nigeria’s financial inclusion story remains incomplete. While millions have entered the formal financial system, access to capital remains limited for households, entrepreneurs and small businesses, restricting the ability of financial inclusion to translate into economic mobility.<\/p>\n

The data exposes a deeper challenge within the financial system. Credit penetration at 13.1 percent of GDP indicates that financial institutions are still not transmitting sufficient capital into productive sectors despite improving macroeconomic activity and expanding business demand.<\/p>\n

Femi Asenuga, Managing Director of Mutual Benefits Assurance Plc, argued that the policy conversation should move beyond lending alone. According to Asenuga, \u201cThe conversation around financial inclusion must go beyond opening bank accounts and accessing loans. True financial empowerment is achieved when individuals and businesses can access financing opportunities while also protecting their income, assets, families, and future aspirations from unforeseen risks.\u201d<\/p>\n

His position reflects a growing recognition that financial resilience depends on the interaction of credit, savings and risk protection rather than any single product category.<\/p>\n

The report’s finding that Microfinance Banks account for only 5.4 percent of total loans further suggests that institutions expected to serve underserved segments remain relatively small compared with the scale of financing demand. This leaves many small businesses trapped between limited formal lending and expensive informal funding sources.<\/p>\n

Asenuga reinforced this concern, noting that \u201cSmall businesses remain the backbone of Nigeria\u2019s economy, yet many continue to face significant barriers in accessing affordable financing.\u201d The implication is that expanding financial access now requires stronger credit transmission mechanisms rather than simply increasing financial system participation.<\/p>\n

DATA BOX<\/strong><\/p>\n