Paschal Ezeliora Highlights How Data Analytics Can Reduce Loan Defaults and Boost SME Financing

By Korede Omololu-David

Small and medium-sized enterprises (SMEs) are the backbone of Nigeria’s economy, yet their access to credit remains limited. Traditional credit risk models, often based on outdated financial statements and manual assessments, have left many businesses excluded from financing. The result is a paradox: banks remain cautious about lending, while SMEs struggle to grow.

According to Paschal Ezeliora, a finance and audit expert with a background at Zenith Bank and PwC, the key to addressing credit risk challenges lies in the implementation of data-driven models. He emphasizes the need for Nigeria’s financial institutions to progress past traditional static spreadsheets, advocating for the adoption of predictive analytics. “By utilizing transaction histories, mobile payment data, and behavioral insights, banks can create more precise profiles of their borrowers,” he asserts.

This approach has already proven effective in global markets. At Zenith Bank, Ezeliora helped implement models that improved risk prediction accuracy and reduced loan defaults. Applied at scale in Nigeria, such innovations could unlock billions in financing for SMEs while reducing systemic risk for lenders.
The Central Bank of Nigeria has encouraged banks to expand credit to small businesses, but without modernized risk assessment tools, the effort risks creating more non-performing loans. Data analytics offers a way out of this cycle. By integrating machine learning models, banks can identify early warning signals of default, segment borrowers more effectively, and tailor repayment structures to business realities.

Ezeliora emphasizes that this transformation requires investment in both technology and talent. “It is not enough to buy software. Nigerian banks must train analysts who can interpret data responsibly and align insights with regulatory frameworks.”

If adopted widely, data-driven credit risk models could reshape Nigeria’s financial landscape. SMEs would gain access to affordable credit, banks would reduce losses, and the economy would benefit from increased productivity and job creation. For a country seeking to diversify beyond oil, this could be a turning point.
“Nigeria’s financial institutions must move beyond static spreadsheets and embrace predictive analytics.”