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Mutual Benefits Highlights Nigeria’s Credit Gap, Calls for Stronger Financial Protection

Mutual Benefits Assurance Plc has raised concerns over the persistent Nigeria credit gap, noting that only about six percent of adults currently have access to credit through formal financial institutions. The company said improving access to finance remains important, but financial protection measures are equally necessary to help individuals and businesses withstand economic shocks.

The concern comes amid ongoing efforts to deepen financial inclusion across Nigeria and expand access to banking, loans and other financial services. While credit is often viewed as a key driver of economic growth, industry experts continue to stress the importance of savings, insurance and wealth protection in building long-term financial resilience. According to Mutual Benefits, financial inclusion should extend beyond access to loans and bank accounts to include mechanisms that protect people from unexpected financial setbacks.

Speaking on the issue, Femi Asenuga said the company remains committed to providing products that help Nigerians build and preserve wealth.

He explained that the company’s offerings include education-focused protection plans, life assurance products, savings solutions, motor and property insurance, as well as business protection packages designed to safeguard livelihoods and future goals. According to Asenuga, addressing the Nigeria credit gap requires a broader approach that combines access to financing with adequate protection against unforeseen risks.

“The conversation around financial inclusion must go beyond opening bank accounts and accessing loans. True financial empowerment is achieved when individuals and businesses can access financing opportunities while also protecting their income, assets, families and future aspirations from unforeseen risks,” he said. He added that unexpected events such as medical emergencies, fire outbreaks, business disruptions or loss of income can wipe out years of financial progress for many households and entrepreneurs.

As part of efforts to bridge the Nigeria credit gap, Mutual Microfinance Bank has continued expanding access to credit for small businesses, traders, entrepreneurs and salary earners.

The bank disclosed that it disbursed loans worth N1.372 billion as of December 31, 2025, supporting individuals and businesses across its target market. The growth continued into 2026, with the institution’s loan portfolio increasing to N1.558 billion by the end of the first quarter, reflecting continued demand for accessible financing solutions.

Financial analysts say narrowing the Nigeria credit gap could stimulate business growth, boost productivity and improve living standards. However, they also note that access to credit alone may not guarantee financial stability without complementary tools such as insurance coverage and disciplined savings plans. A stronger combination of financing and financial protection could help households and businesses better withstand economic uncertainties while supporting long-term wealth creation.

Mutual Benefits maintains that sustainable financial inclusion requires a balanced approach that combines credit access, savings culture and risk protection. As lending activities expand across the country, the company believes that strengthening these pillars will be critical to improving financial resilience and supporting broader economic development.

By promoting both financing opportunities and protection products, stakeholders hope to make meaningful progress in closing the credit gap and creating a more inclusive financial system for Nigerians.

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Victor Michael

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