Only 3% of Nigerian Workers Access Consumer Credit, CREDICORP Reports

Despite rising demand for financial support, only 3% of Nigerian workers have accessed consumer credit, according to a recent report by the Nigerian Consumer Credit Corporation (CREDICORP). The data highlights a major gap in the country’s financial system, leaving millions struggling to finance essential needs such as housing, education, and business investments.

CREDICORP’s findings indicate that while consumer credit is a vital tool for economic growth, most Nigerians lack access due to stringent lending policies, high interest rates, and inadequate financial literacy. Experts argue that without wider access to credit, the country’s middle and lower-income earners will continue to face economic hardships.

“Consumer credit is crucial for economic stability. However, most Nigerians are unable to secure loans due to rigid bank requirements and the absence of a structured credit system,” said Bayo Adebayo, an economic analyst in Lagos.

The need for consumer credit has surged amid Nigeria’s high inflation rate, which has eroded purchasing power. Many workers turn to informal lending sources with exorbitant interest rates, worsening financial burdens. Recent reports from the Central Bank of Nigeria (CBN) show a 26.29% rise in consumer credit, reaching N4.42 trillion in November 2024, yet this growth has not translated into widespread access.

“Many workers need loans to cover essential expenses like rent, school fees, and transportation, but banks and financial institutions make it difficult for the average Nigerian to qualify,” said Bola Idowu, a financial consultant.