Zitra Investments Reveals 10% Credit Access for Nigerians

Executives from Zitra Investments revealed that only about 10% of adult Nigerians have access to formal credit, despite a strong demand. This issue is attributed to a lack of collateral, informality, and absence of credit history.

At a media briefing marking the company's sixth anniversary, Managing Director Mr Tunde Obadero emphasized the importance of small businesses in Nigeria's economy and noted that access to finance is their biggest constraint. Co-founder Mr Femi Okuyelu stated that while financial inclusion is at 79%, 21 million adults remain excluded, equivalent to the populations of Finland, Estonia, and Denmark combined.

He explained that many individuals rely on informal borrowing due to the lack of collateral and credit history. Zitra's response includes creating a Social Business model to help informal customers organize their businesses and access credit based on cash flow rather than collateral.

Chief Olaotan Olamuyiwa discussed the challenges SMEs face with funding, highlighting that many have funds tied up with clients.