The Nigeria’s Credit Landscape Report 2025 has revealed a striking paradox in the nation’s financial ecosystem, showing that while more Nigerians are becoming financially included, only about six per cent of adults currently access credit through formal financial institutions.
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 the Gross Domestic Product, 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 notes that Nigeria’s real sector recorded sustained expansion throughout 2025, with manufacturing, services and agriculture posting positive growth indicators, creating increased 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 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.
Through its diverse portfolio of solutions, Mutual Benefits said it continues to provide Nigerians with tools to build, preserve and protect wealth.
These include education-focused protection plans, life assurance products, savings-oriented solutions, motor and property insurance, and business protection products designed to safeguard livelihoods and future goals.
Speaking on the development, the Managing Director of Mutual Benefits Assurance Plc, Femi Asenuga, said, “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.”
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The report further reveals that Microfinance Banks account for only 5.4 per cent of Nigeria’s total loan book, underscoring the need for stronger support for Small and Medium Enterprises and underserved communities that often struggle to access conventional bank financing.
As part of its commitment to advancing financial inclusion, Mutual Microfinance Bank said it continues to deliver accessible financing solutions tailored to the needs of small businesses, traders, salary earners, entrepreneurs and emerging enterprises across Nigeria.
As of 31 December 2025, the bank had disbursed loans totalling N1.372bn, further strengthening access to formal credit for individuals and businesses across its target segments.
This growth trajectory continued into 2026, with the loan portfolio rising to N1.558bn by the end of the first quarter of 2026, reflecting sustained momentum in supporting productive economic activity.
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.”
With economic activity expected to strengthen further and demand for financing projected to increase across several sectors, Mutual Benefits believes that the future of financial inclusion in Nigeria will depend on creating an ecosystem where access to credit, savings and protection work together to improve financial well-being.
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.
Mutual Benefits Assura…
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