‘Only 6% of Nigerians access formal credit’

Nigeria's financial ecosystem presents a paradox, with a recent report indicating that only about six percent of adults access credit through formal financial institutions, despite a high rate of financial inclusion exceeding 64 percent. The Nigeria’s Credit Landscape Report 2025, published in June 2026 by Credit Direct, highlights this significant gap.

The report also points out that credit extended to the Nigerian private sector stands at a mere 13.1 percent of the Gross Domestic Product (GDP). This figure falls considerably short when compared to peer African economies, such as Kenya and South Africa, underscoring persistent barriers to credit access for households, entrepreneurs, and small businesses.

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The 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.

Despite these challenges, Nigeria's real sector, encompassing manufacturing, services, and agriculture, recorded sustained expansion throughout 2025, generating increased demand for working capital and business financing. However, the findings suggest that existing economic conditions and business activity have not translated into broader access to formal credit.

Reacting to the report, Mutual Benefits Assurance Plc stressed the urgent need for a more comprehensive approach to financial inclusion. Femi Asenuga, the Managing Director, stated that true financial empowerment requires not only access to finance but also robust savings and insurance protection. He emphasized that unexpected events can easily erase financial progress, making insurance and disciplined savings critical for long-term resilience. The report also noted that Microfinance Banks hold only 5.4 percent of Nigeria’s total loan book, indicating a need for greater support for SMEs.

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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, can erase years of financial progress. This is why insurance and disciplined savings remain critical pillars of long-term financial resilience.