Nigeria’s Credit Landscape Report 2025 has revealed a significant gap in the country’s financial system, showing that despite rising levels of financial inclusion, only about six per cent of adults currently obtain credit from formal financial institutions.

The report, published by Credit Direct in June 2026, noted that more than 64 per cent of Nigerian adults are now financially included.

However, access to formal credit remains limited, highlighting a disconnect between financial inclusion and credit availability.

According to the report, credit to Nigeria’s private sector accounts for just 13.1 per cent of Gross Domestic Product, a figure that trails those of comparable African economies, including Kenya and South Africa.

The findings underscore persistent challenges in accessing credit for households, entrepreneurs and small businesses, despite improving macroeconomic conditions and increased economic activity across major sectors.

The report noted that Nigeria’s real sector maintained steady growth throughout 2025, with the manufacturing, services and agricultural sectors recording positive performance indicators.

This expansion has driven stronger demand for working capital and business financing, further highlighting the need for improved access to credit.

Reacting to the findings, Mutual Benefits Assurance Plc said the report underscores the urgent need for a more comprehensive approach to financial inclusion—one that extends beyond access to credit to include savings, insurance coverage and long-term financial planning.

The insurer stressed that while credit remains a critical driver of economic growth, financial protection mechanisms are equally important in strengthening the resilience of individuals and businesses against economic shocks and unforeseen risks.

Mutual Benefits said it remains committed to empowering Nigerians with solutions that help them build, preserve and protect wealth through its broad range of insurance and financial products.

According to the company, its offerings include education protection plans, life assurance policies, savings-focused products, motor and property insurance, as well as business protection solutions designed to secure livelihoods, support financial stability and safeguard long-term aspirations.

Speaking on the development, the Managing Director of Mutual Benefits Assurance Plc, Femi Asenuga, said, “The conversation around financial inclusion must go beyond opening bank accounts and accessing loans. True financial empowerment is achieved when individuals and businesses can access financing opportunities while also protecting their income, assets, families, and future aspirations from unforeseen risks.

“For many Nigerian families and business owners, a single unexpected event such as a medical emergency, fire incident, business disruption, or loss of income, can erase years of financial progress. This is why insurance and disciplined savings remain critical pillars of long-term financial resilience.”

The report also found that Microfinance Banks contribute only 5.4 per cent of Nigeria’s total loan portfolio, underscoring the limited flow of credit to Small and Medium Enterprises and underserved segments that frequently encounter difficulties obtaining financing from traditional commercial banks.

To help address this gap, Mutual Microfinance Bank said it remains focused on expanding financial inclusion through accessible and customer-focused lending solutions tailored to the needs of traders, salary earners, entrepreneurs, small businesses and emerging enterprises nationwide.

According to the bank, its financing products are aimed at closing credit gaps, fostering enterprise growth and creating greater economic opportunities for individuals and businesses that have historically been excluded from mainstream financial services.

As part of its efforts to deepen financial inclusion, Mutual Microfinance Bank said it continues to provide accessible and customised financing solutions designed to meet the needs of small businesses, traders, salary earners, entrepreneurs and emerging enterprises across Nigeria.

The bank disclosed that, as of December 31, 2025, it had disbursed loans worth N1.372 billion, reinforcing access to formal credit and supporting the growth of individuals and businesses within its key customer segments.

Asenuga added, “Small businesses remain the backbone of Nigeria’s economy, yet many continue to face significant barriers in accessing affordable financing. Through Mutual Microfinance Bank, we are helping to bridge this gap by providing flexible financial solutions that enable entrepreneurs to grow, create jobs, and contribute meaningfully to economic development.

“At the same time, we encourage individuals and businesses to think beyond borrowing by adopting a culture of saving, risk management, and financial protection. Sustainable prosperity is built not only by generating income but also by protecting it.”

The company reaffirmed its commitment to empowering Nigerians through innovative insurance products and accessible financial services that help individuals, families and businesses build resilience, seize opportunities with confidence and achieve long-term financial security.

Mutual Benefits Assurance Plc, one of Nigeria’s leading insurance providers, has more than three decades of experience delivering dependable and innovative life and non-life insurance solutions to individuals, families and corporate organisations across the country.