Mutual Benefit Decries Credit Gap, Says Only 6% Adults Have Access

Mutual Benefit Insurance Plc has highlighted Nigeria's significant credit gap, revealing that a mere 6% of the population accesses credit through formal financial institutions, even as financial inclusion grows.

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Credit to the Nigerian private sector stands at just 13.1 per cent of gross domestic products (GDP), well below peer African economies such as Kenya and South Africa.

The company's report indicates that while over 64% of Nigerian adults are financially included, formal credit penetration remains critically low. Credit to the Nigerian private sector stands at just 13.1% of GDP, falling well short of comparable African economies like Kenya and South Africa.

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the conversation around financial inclusion must go beyond opening bank accounts and accessing loans.

Despite improving economic conditions and increased business activity, the report identifies persistent barriers hindering credit access for households, entrepreneurs, and small businesses. This occurs even as Nigeria's real sector, including manufacturing, services, and agriculture, has shown sustained expansion, boosting demand for working capital.

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True financial empowerment would be achieved when individuals and businesses access financing opportunities while also protecting their income, assets, families and future aspirations from unforeseen risks.

Mutual Benefits Assurance stresses the urgent need for a comprehensive financial inclusion strategy. This strategy should integrate access to finance with savings, insurance protection, and long-term financial planning. Managing Director Femi Asenuga stated that true financial empowerment requires individuals and businesses to access financing while simultaneously protecting their income, assets, and future aspirations from unforeseen risks. He noted that a single unexpected event, such as a medical emergency or business disruption, can erase years of financial progress for many Nigerian families and business owners.

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for many Nigerian families and business owners, a single unexpected event such as a medical emergency, fire incident, business disruption or loss of income, could erase years of financial progress.