Nigeria Women Get 26% of Loans Despite 7.8% Default Rate, Credit Direct Says
Updated
Updated · Business Insider Africa · Jun 3
Nigeria Women Get 26% of Loans Despite 7.8% Default Rate, Credit Direct Says
2 articles · Updated · Business Insider Africa · Jun 3
Summary
Credit Direct’s 2025 Nigeria Credit Landscape Report, based on about 300,000 active borrowers, found women receive just 26% of formal loans while posting a 7.8% delinquency rate versus 10.9% for men.
₦478,117 was the average loan to women, above ₦430,962 for men, and the pattern held among married borrowers, where married women borrowed about ₦500,000 on average yet married men defaulted 2.63 percentage points more.
90% of borrowers earn below ₦200,000 a month, with rent, medical bills and school fees the main reasons for borrowing, underscoring how credit is being used to cover essential household spending.
BNPL demand was led by the self-employed at 45% of transactions versus 29% for salaried workers, with smartphones making up 70% of gadget purchases and most borrowers stretching repayment to five or six months.
Only about 6% of Nigerian adults borrow from formal institutions even though more than 64% are financially included, leaving lenders with what the report calls a missed commercial opportunity among underserved, lower-risk women.
Nigerian women are proven to be safer borrowers. Why are banks leaving this multi-billion Naira opportunity on the table?
Can new AI lending models finally break the gender bias that costs Nigerian women and banks billions?
Bridging Nigeria’s Gender Credit Divide: Data, Digital Solutions, and the AfDB $61 Million Initiative
Overview
Nigeria’s credit landscape is shaped by persistent inflation, which has eroded household purchasing power for over a decade and pushed consumer-price inflation to 24.7% in 2023—almost triple the regional average. This inflationary pressure directly affects both the cost and accessibility of credit, making it harder for individuals and businesses to borrow. As a result, domestic credit to the private sector becomes a crucial indicator of economic activity and financial inclusion. These challenges highlight the need for innovative financial solutions and targeted policies to ensure more equitable access to credit, especially for underserved groups like women entrepreneurs.