Only 6% Of Nigerians Access Formal Credit – Report

Nigeria’s Credit Landscape Report 2025 has revealed low credit penetration, with just 6 per cent of Nigerian adults accessing credit through formal financial institutions, despite 64 per cent financial inclusion.

Published by Credit Direct in June 2026, the report highlights that although more than 64 per cent of Nigerian adults are financially included, formal credit penetration remains significantly low.

Credit to the Nigerian private sector stands at just 13.1 per cent of GDP, well below peer African economies such as Kenya and South Africa. The findings point to persistent barriers to credit access for households, entrepreneurs and small businesses, despite improving economic conditions and growing business activity across key sectors of the economy.

The report also noted that Nigeria’s real sector recorded sustained expansion throughout 2025, with manufacturing, services, and agriculture posting positive growth indicators, thereby increasing demand for working capital and business financing.

Reacting to the findings, Mutual Benefits Assurance Plc said the report reinforces the urgent need for a more holistic approach to financial inclusion, one that combines access to finance with savings, insurance protection and long-term financial planning.

The leading insurer noted that while access to credit remains important for economic growth, financial protection mechanisms are equally essential in helping individuals and businesses withstand economic shocks.

The managing director of Mutual Benefits Assurance, Femi Asenuga, stated that “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.

“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.”

The report further revealed that Microfinance Banks account for only 5.4 per cent of Nigeria’s total loan book, underscoring the need for stronger support for SMEs and underserved communities that often struggle to access conventional bank financing.

Asenuga added, “Small businesses remain the backbone of Nigeria’s economy, yet many continue to face significant barriers in accessing affordable financing. Through Mutual Microfinance Bank, we are helping to bridge this gap by providing flexible financial solutions that enable entrepreneurs to grow, create jobs and contribute meaningfully to economic development.

“At the same time, we encourage individuals and businesses to think beyond borrowing by adopting a culture of saving, risk management and financial protection. Sustainable prosperity is built not only by generating income but also by protecting it.”

The company reaffirmed its commitment to supporting Nigerians through innovative insurance solutions and accessible financial services that empower individuals, families, and businesses to build resilience, pursue opportunities confidently, and achieve lasting financial security.