Union Bank Nigeria Targets Financial Exclusion with Loans

The article emphasizes the necessity for Nigerian banks to reform their credit models to cater to the actual economic landscape, particularly for underserved markets. It mentions the role of Ogun, chairwoman of an economic cooperative, and highlights Balogun, a textile trader, who has been involved in a weekly contribution scheme.

The article notes that 26% of Nigerian adults remain financially excluded, as reported by EFInA in 2023. It identifies access to finance as the largest constraint for business growth, especially for enterprises in the semi-formal sector.

Union Bank Nigeria is cited as one of the few institutions beginning to address this gap by designing financial products tailored to specific market segments. The bank has disbursed $150 million in cash flow loans to entrepreneurs, aiming to bridge the financial divide and support economic activity among underserved populations.