Mutual Benefit Insurance Plc has raised concerns over Nigeria’s widening credit gap, revealing that only six per cent of adults have access to credit through formal financial institutions despite notable progress in financial inclusion.
The insurer disclosed this in a recent report, which showed that while more than 64 per cent of Nigerian adults are financially included, access to formal credit remains significantly limited.
According to the report, credit to Nigeria’s private sector accounts for just 13.1 per cent of the country’s Gross Domestic Product (GDP), a figure that falls well below levels recorded in peer African economies such as Kenya and South Africa.
The company noted that the data highlights persistent structural barriers preventing households, entrepreneurs, and small businesses from accessing credit, even as economic conditions improve and business activities expand across key sectors.
It further observed that Nigeria’s real sector experienced sustained growth throughout 2025, with manufacturing, agriculture, and services sectors posting positive performance indicators. This growth, the report stated, has driven increased demand for working capital and business financing.
Mutual Benefit emphasised the need for a more comprehensive approach to financial inclusion, stressing that access to credit alone is insufficient to achieve true financial empowerment.
The report advocated for an integrated model that combines credit access with savings, insurance coverage, and long-term financial planning to build resilience among individuals and businesses.
Managing Director of the company, Femi Asenuga, underscored the importance of broadening the financial inclusion discourse beyond basic banking services and loan accessibility.
“The conversation around financial inclusion must go beyond opening bank accounts and accessing loans. True financial empowerment will be achieved when individuals and businesses not only access financing opportunities but also protect their income, assets, families, and future aspirations from unforeseen risks,” he said.
He warned that many Nigerian households and business owners remain vulnerable, as a single unexpected event—such as a medical emergency, fire outbreak, business disruption, or loss of income—can wipe out years of financial progress.
The report concludes that strengthening financial protection mechanisms alongside expanding credit access will be critical to supporting sustainable economic growth and improving financial resilience across Nigeria.
