Mutual Benefit Decries Credit Gap, Says Only 6% Adults Have Access

Ebere Nwoji

Mutual Benefit Insurance Plc, has decried Nigeria’s credit gap in Nigeria, revealing that despite increasing financial inclusiveness witnessed in the country, only 6 per cent of the population has access to credit through formal financial institutions.

The company said this in a report, which highlighted  that although more than 64 per cent of Nigerian adults were  financially included, formal credit penetration remained significantly low. 

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

According to the underwriting firm, findings point to persistent barriers to credit access for households, entrepreneurs and small businesses, despite improving economic conditions and growing business activity across key sectors of the economy.

The report also noted that Nigeria’s real sector recorded sustained expansion throughout 2025, with manufacturing, services and agriculture posting positive growth indicators, creating increased demand for working capital and business financing.

Mutual Benefits Assurance said the report reinforces 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 noted that while access to credit remained important for economic growth, financial protection mechanisms were equally essential in helping individuals and businesses withstand economic shocks.

According to the Managing Director, of the company, Femi Asenuga, the conversation around financial inclusion must go beyond opening bank accounts and accessing loans. He said true financial empowerment would be achieved when individuals and businesses access financing opportunities 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.