Only 6% of Nigerian Adults Access Formal Credit

A report by Mutual Benefit Assurance Plc reveals that only 6% of Nigeria's adult population has access to formal credit from financial institutions. Despite a reported 64% financial inclusion rate among Nigerian adults, the penetration of formal credit remains significantly low.

The Nigerian private sector's credit stands at just 13.1% of the Gross Domestic Product (GDP), which is below that of peer African economies such as Kenya and South Africa. The report identifies persistent barriers to credit access for households and small businesses, despite improved economic conditions and growth in business activities across various sectors.

It emphasizes the importance of a holistic approach to financial inclusion that combines access to finance, savings, insurance, and long-term financial planning. Femi Asenuga, the Managing Director of Mutual Benefit Assurance Plc, stated that access to credit is crucial for economic growth and financial protection, enabling individuals and businesses to withstand economic shocks.