President of the FinTech Association of Nigeria (FintechNGR), Dr Stanley Jacob, says the nation’s credit economy is making progress but remains at an early stage of development.
Jacob explained that credit adoption in the country could be rated at about “three out of five,” indicating steady growth alongside persistent challenges.
According to him, financial technology firms have played a key role in expanding access to credit, particularly among underserved populations.
“Fintechs deserve credit for democratising access. Players such as Carbon, FairMoney, CredPal and CDCare have introduced Buy Now, Pay Later and micro-lending at scale,” he said.
He explained that these platforms leverage mobile technology and alternative data for credit scoring, enabling them to reach consumers often excluded by traditional banking systems.
Jacob noted that, although with the progress, credit usage remains largely urban, youth-driven and transactional, driven more by necessity than widespread acceptance of credit as a financial tool.
He attributed this to lingering mistrust shaped by past experiences.
“The mistrust is not irrational. It stems from years of unclear pricing structures and difficult recovery practices that have influenced public perception,” he said.
Jacob added that many Nigerians still view borrowing as a last resort rather than a means of financial growth, describing this mindset as a key barrier to wider adoption.
He, however, commended recent Federal Government initiatives aimed at strengthening the credit ecosystem.
He described programmes such as the Nigeria Credit Guarantee Company and the Nigerian Consumer Credit Corporation as positive steps toward improving access to credit.
“CREDICORP holds promise as an enabler of consumer credit at scale, but effective implementation will be critical,” he said.
Jacob emphasised the need for sustained efforts to strengthen credit infrastructure, including improved credit reporting systems and increased public awareness.
He recommended measures to build trust through transparent pricing, strong consumer protection and incentives for responsible borrowing.
“The culture will follow the infrastructure, but only if that infrastructure is seen as fair and accessible. While progress has been made, more work is needed,” he said.
