Moniepoint Disbursed ₦1 Trillion in Loans to 70,000 Businesses in 2025

Moniepoint disbursed more than ₦1 trillion in loans to approximately 70,000 businesses in 2025, according to figures published in its 2025 Year in Review report.

The milestone highlights the growing role of fintech lenders in supporting Nigeria’s informal and small business economy, where access to traditional bank financing remains limited.

The company reported that businesses which received financing recorded an average 36 percent increase in transaction value after accessing loans. This suggests that credit availability continues to play a critical role in sustaining daily operations and supporting growth among informal enterprises.

For many small traders and merchants, short-term financing is often essential for restocking inventory, managing cash flow, and responding to fluctuations in demand.

Profile of Loan Recipients

Most of the loans were accessed by everyday retail and wholesale businesses. Provision stores made up the largest share of beneficiaries, followed by supermarkets, building material dealers, raw food traders, and drink and water distributors.

This pattern reflects Moniepoint’s strong presence among small merchants that rely heavily on point-of-sale terminals and digital payment systems.

Average Loan Size and Capital Impact

Distributing ₦1 trillion to about 70,000 businesses implies an average loan size of roughly ₦14.3 million per borrower. Although actual loan amounts varied significantly, the estimate indicates that many recipients received substantial working capital rather than small, short-term microloans.

For informal businesses that typically operate with limited reserves, access to funding at this scale can support expansion, bulk purchasing, and improved operational stability.

Persistent Financing Barriers for Small Businesses

Limited access to credit remains one of the biggest challenges facing small and medium-sized enterprises in Nigeria.

Conventional banks often require collateral, extensive documentation, and formal financial records. Many informal businesses are unable to meet these conditions, leaving them excluded from traditional lending channels.

A 2017 survey by the Small and Medium Enterprises Development Agency of Nigeria revealed that fewer than 6 percent of MSMEs in the country had accessed formal financing. These structural barriers have contributed to a long-standing funding gap in the sector.

Fintechs and Data-Driven Lending Models

Industry experts note that one of the main obstacles to small business lending has been the lack of reliable data for credit assessment. Without verifiable records, lenders have struggled to evaluate risk accurately.

Fintech platforms are gradually addressing this challenge by building detailed transaction histories for merchants. Payment records, POS activity, and digital sales data now serve as alternative indicators of business performance.

Companies such as Paystack have also entered the lending space after acquiring microfinance bank licences, signalling a broader shift toward fintech-led credit provision.

Managing Risk at Scale

Lending at the scale achieved by Moniepoint inevitably raises concerns around default risk and loan recovery.

However, fintech lenders argue that their access to real-time transaction data enables more precise risk modelling.

Continuous monitoring of business activity allows them to adjust credit limits, repayment terms, and pricing based on performance. Over time, this data-driven approach may improve portfolio quality and reduce exposure to non-performing loans.

Read More: Moniepoint Closes $200 Million Series C as Global Investors Double Down on African Fintech

Filling the Gap Left by Traditional Banks

Historically, Nigerian commercial banks have prioritised corporate lending and investments in government securities. Small and informal businesses have often been sidelined due to perceived risk and high administrative costs.

Fintech platforms such as Moniepoint have increasingly filled this gap by offering faster approvals, flexible repayment structures, and minimal paperwork.

By embedding credit within payment and banking platforms, these companies have lowered entry barriers for underserved entrepreneurs.

Growing Role of Fintechs in SME Financing

If current trends continue, fintech platforms are likely to become the primary source of credit for Nigeria’s small businesses, particularly in the informal sector.

Moniepoint’s ₦1 trillion lending milestone illustrates how rapidly this transformation is taking place. What was once a marginal segment of the financial system is evolving into a major channel for business financing.

As data infrastructure improves and regulatory frameworks mature, fintech-led lending is expected to play an even larger role in driving small business growth and financial inclusion across the country.