Mutual Benefit Highlights Credit Gap, Notes Only 6% of Adults Have Access

Ebere Nwoji

Mutual Benefit Insurance Plc has highlighted Nigeria’s credit gap, noting that despite growing financial inclusion, only 6 percent of the population can obtain credit from formal financial institutions.

The company released a report that, while showing that more than 64 percent of Nigerian adults are financially included, points out that formal credit penetration remains very low.

“Credit to the Nigerian private sector stands at just 13.1 percent of gross domestic product (GDP), well below peer African economies such as Kenya and South Africa,” the report states.

According to the underwriting firm, the findings reveal persistent barriers to credit access for households, entrepreneurs and small businesses, even as economic conditions improve and business activity grows across key sectors.

The report also observes that Nigeria’s real sector expanded steadily throughout 2025, with manufacturing, services and agriculture posting positive growth, thereby increasing demand for working capital and business financing.

Mutual Benefit Assurance said the report underscores the urgent need for a more holistic approach to financial inclusion—one that combines access to finance with savings, insurance protection and long‑term financial planning.

The insurer added that while credit access is vital for economic growth, financial protection mechanisms are equally essential to help individuals and businesses withstand economic shocks.

Managing Director Femi Asenuga said the conversation around financial inclusion must go beyond opening bank accounts and accessing loans. He added that true financial empowerment is achieved when people and businesses can secure financing while also protecting their income, assets, families and future aspirations from unforeseen risks.

He noted that for many Nigerian families and business owners, a single unexpected event—such as a medical emergency, fire incident, business disruption or loss of income—could erase years of financial progress.