Nigeria: Microfinance Banks Record 82 Percent Boom in Lending in 2020
Microfinance Banks in Nigeria recorded an 82 percent boost in lending rising from NGN 300.2 billion (about $7.9 billion) in 2019 to NGN 546.6 billion (about $14.3 billion) in 2020. This is according to the latest data from the National Bureau of Statistics. The amount has doubled since 2018 due to improved technology, easier processing of loans, better loan recovery methods, increased competition, and a growing class of employees with an appetite for short-term credit.
This is the clearest confirmation yet that this is the fastest-growing credit segment in the financial lending space. Microfinance banks have led the charge on consumer loans in the last three years extending credit to the risky retail end of the market which has for years being ignored by commercial banks.