Digital micro-credit is emerging as a critical source of financing for millions of Nigerians in the informal economy, with experts saying technology-driven lending is helping bridge the gap left by conventional banking.
As inflation continues to squeeze household incomes and small businesses grapple with cash flow challenges, more traders, artisans, transport operators and other low-income earners are turning to mobile-based lending platforms for quick access to short-term credit.
According to industry experts, the growing popularity of digital lending reflects the difficulty many Nigerians face in accessing traditional bank loans due to the lack of collateral, formal credit histories and regular income documentation.
With Nigeria’s informal sector accounting for a substantial share of employment and economic activity, digital lending platforms are increasingly providing eligible users with instant access to small-value loans through their mobile phones.
The importance of digital credit services came into sharp focus earlier this year when the temporary suspension of emergency airtime credit disrupted access for millions of mobile subscribers nationwide.
The suspension followed a regulatory dispute over the Federal Competition and Consumer Protection Commission’s Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations.
Commenting on the development, Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the incident underscored the essential role airtime credit plays in everyday economic activity.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy. Removing that infrastructure, even temporarily, had consequences that went far beyond the telecom sector,” he said.
Industry estimates place Nigeria’s airtime credit market at between ₦300 billion and ₦400 billion annually, with roughly 40 million active subscribers relying on the service before its temporary suspension.
The service has since resumed across mobile networks following regulatory developments and ongoing court proceedings.
Industry analysts note that while subscribers obtain airtime credit through mobile network operators, the underlying technology is provided by specialised financial technology companies that use automated systems to assess creditworthiness, manage lending risks and process transactions in real time.
Among the firms operating in the sector is Nairtime Nigeria Limited, the Nigerian arm of Optasia, which has operated in the country since 2012. The company provides the technology platform supporting Airtime Credit Services offered by mobile network operators while also delivering digital financial products such as micro-credit and automated lending solutions.
Chief Executive Officer of Nairtime Nigeria and Chief Commercial Officer of Optasia, Uchenna Agbo, said responsible digital financial services are playing an increasingly important role in expanding financial access.
“These services provide a lifeline for millions of Nigerian consumers who rely on them for daily connectivity, and we welcome this development,” Agbo said following the restoration of Airtime Credit Services.
She added that fair financial access remains central to the company’s operations and reaffirmed its commitment to working with regulators and industry partners to promote a transparent and inclusive digital financial ecosystem.
Experts say the rapid adoption of digital micro-credit aligns with Nigeria’s financial inclusion goals by extending access to affordable financial services through innovation, artificial intelligence and data-driven credit assessment.
As mobile phones increasingly serve as platforms for communication, payments and financial transactions, analysts believe digital lending will continue to play a pivotal role in supporting economic activity across Nigeria’s vast informal sector.
However, stakeholders stressed that effective regulatory coordination, robust consumer protection and continuous technological innovation will be essential to ensuring that digital credit services remain accessible, transparent and sustainable for the millions of Nigerians who depend on them.
