Moniepoint Extends N1 trillion in Credit to Small Businesses in Nigeria

Many small businesses in Nigeria are finding it harder to get loans from commercial banks. Banks are being more careful because business risks are rising, rules are tighter, and interest rates are still high.

In the middle of this, fintech lender Moniepoint says it gave out more than ₦1 trillion in loans to small businesses in 2025, showing how fintech companies are stepping in to support traders and entrepreneurs.

Small and medium-sized businesses are important in Nigeria because they employ many people and keep markets running. But getting bank loans has always been difficult for many of them. Banks often ask for strong collateral, clear financial records, and long credit history. Many small businesses do not have these, especially those operating in the informal sector.

The bigger banking picture also shows that lending was tight. Credit to the private sector ended 2025 at about ₦75.8 trillion in December, which was lower than the ₦78.02 trillion recorded at the end of 2024. This shows that banks became more careful and reduced lending in parts of the economy.

For small businesses, the situation is even tougher because banks usually prefer to give loans to big companies with strong collateral. That means SMEs get a small part of total bank credit, especially unsecured loans where a business does not have heavy assets to pledge.

Moniepoint says it is lending differently. The company explained that it gives loans through its microfinance banking unit to many everyday businesses like provision stores, supermarkets, and building materials traders. Instead of relying mainly on normal credit scores, it looks at transaction records and payment behaviour to decide who qualifies and how much they can borrow.

The company also said the loans are helping businesses grow. It claimed that businesses that received its credit saw average growth of more than 36 percent. The point is that quick working capital can help small businesses restock, expand, and keep operating, especially when bank loans are not easy to get.

Moniepoint started in 2015 and has grown into a major financial platform for small businesses. It says it now serves more than 6 million active businesses, offering services like digital payments, banking, loans, foreign exchange, and business tools.

Its strong payments business is a major reason it can lend. Moniepoint said it processed ₦412 trillion in transaction value in 2025 and handled more than 14 billion transactions. It also said it powers about 80 percent of in-person payments across Nigeria.