EFInA Survey Reveals Rising Borrowing for Daily Needs

The Access to Financial Services in Nigeria (A2F) Survey conducted by Enhancing Financial Innovation and Access (EFInA) reveals that an increasing number of Nigerians are accessing formal credit primarily for managing everyday financial pressures rather than for business expansion or acquiring productive assets. The survey, which included adults from Nigeria’s thirty-six states and the Federal Capital Territory, indicates that while the use of formal credit has increased, the purpose of borrowing has shifted.

A significant portion of loans is now utilized for consumption needs such as food, rent, and medical bills, rather than for productive enterprises. This trend has led to a decline in the share of borrowers using loans for household assets.

Additionally, many formal borrowers reported experiencing difficulties in repaying their loans, highlighting the financial strain they are under.