BY NKECHI NAECHE-ESEZOBOR—Despite growing levels of financial inclusion across Nigeria, access to formal credit remains alarmingly low, with only about six per cent of adults obtaining loans through regulated financial institutions, according to the Nigeria’s Credit Landscape Report 2025.
The report, published by Credit Direct in June 2026, reveals a striking disconnect within the country’s financial system. While more than 64 per cent of Nigerian adults are now financially included, formal lending remains out of reach for the vast majority of households, entrepreneurs and small businesses.
The findings further show that credit to the private sector accounts for just 13.1 per cent of Nigeria’s Gross Domestic Product (GDP), significantly below levels recorded in comparable African economies such as Kenya and South Africa. This, the report noted, continues to constrain business growth and economic opportunities despite improvements in overall economic activity.
Nigeria’s real sector recorded sustained growth throughout 2025, with manufacturing, agriculture and services posting positive performance and driving increased demand for working capital and business financing.
Reacting to the report, Mutual Benefits Assurance Plc said the findings underscore the need for a broader approach to financial inclusion that goes beyond access to loans and incorporates savings, insurance and long-term financial planning.
According to the company, while credit plays a vital role in economic development, financial protection mechanisms are equally important in helping individuals and businesses navigate economic uncertainties and unforeseen shocks.
The insurer noted that it continues to provide a range of solutions designed to help Nigerians build and protect wealth, including life assurance, education plans, savings products, motor and property insurance, and business protection services.
Speaking on the report, Managing Director of Mutual Benefits Assurance Plc, Femi Asenuga, said financial inclusion should not be measured solely by the number of bank accounts opened or loans disbursed.
“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,” he said.
He warned that unexpected events such as medical emergencies, fire outbreaks, business disruptions or loss of income can quickly wipe out years of financial progress, making insurance and disciplined savings essential tools for long-term financial stability.
The report also revealed that Microfinance Banks account for only 5.4 per cent of Nigeria’s total loan portfolio, highlighting the limited availability of credit for small businesses and underserved communities.
To address this challenge, Mutual Microfinance Bank said it has continued to expand access to financing for traders, entrepreneurs, salary earners and small enterprises. The bank disclosed that it disbursed loans worth N1.372 billion as of December 31, 2025, with its loan portfolio increasing to N1.558 billion by the end of the first quarter of 2026.
Asenuga stressed that small and medium-sized enterprises remain critical to Nigeria’s economy but continue to face major barriers in accessing affordable funding. He said the bank is helping bridge the financing gap through flexible lending solutions that support business growth, job creation and economic development.
He also encouraged Nigerians to adopt stronger saving habits and embrace risk management strategies, noting that sustainable prosperity depends not only on generating income but also on protecting it.
With financing demand expected to rise as economic activity strengthens, Mutual Benefits maintained that the future of financial inclusion in Nigeria will depend on building an ecosystem where access to credit, savings and insurance products work together to improve financial well-being and resilience.
The company reaffirmed its commitment to supporting individuals, families and businesses through innovative insurance offerings and accessible financial services aimed at promoting long-term financial security.
