Nigeria’s persistent financing challenges have come under renewed attention as Mutual Benefits Assurance Plc raised concerns over the country’s limited access to formal credit, describing the situation as a major obstacle to financial inclusion and economic growth.
The insurance company noted that the Nigeria credit gap remains significant, with only about six percent of adults currently able to obtain credit through formal financial institutions. According to the company, expanding access to loans is important, but financial inclusion efforts must also focus on protecting individuals and businesses from economic shocks that can wipe out years of financial progress.
Speaking on the issue, Femi Asenuga said conversations about financial inclusion should move beyond bank account ownership and loan accessibility.
He stressed that genuine financial empowerment occurs when individuals and businesses can access funding while also having adequate protection for their assets, income, families and future plans. According to Asenuga, the Nigeria credit gap highlights the need for a broader approach that combines financing opportunities with risk management solutions.
“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.
The Mutual Benefits chief explained that many households and business owners remain vulnerable to unexpected events capable of causing severe financial setbacks.
He noted that medical emergencies, fire outbreaks, business interruptions and sudden income losses often erase years of hard work and financial planning. For this reason, he argued that insurance coverage and disciplined savings habits should be regarded as essential pillars of long-term financial stability.
“For many Nigerian families and business owners, a single unexpected event such as a medical emergency, fire incident, business disruption or loss of income, can erase years of financial progress. This is why insurance and disciplined savings remain critical pillars of long-term financial resilience,” Asenuga stated.
He added that Mutual Benefits continues to provide a wide range of products designed to help Nigerians build and protect wealth. These offerings include education protection plans, life assurance policies, savings-based products, motor insurance, property coverage and business protection solutions aimed at safeguarding livelihoods and future goals.
As part of efforts to address the Nigeria credit gap, Mutual Microfinance Bank has continued to expand financing opportunities for small businesses, entrepreneurs, salary earners and traders across the country.
The bank reported that as of December 31, 2025, it had disbursed loans worth N1.372 billion to individuals and businesses operating within its target market segments. The institution said its lending activities helped improve access to formal credit for many Nigerians who would otherwise struggle to secure financing.
The bank also disclosed that its growth momentum continued into 2026. According to available figures, the loan portfolio increased from N1.372 billion at the end of 2025 to N1.558 billion by the conclusion of the first quarter of 2026. The increase reflects continued demand for financing among small businesses and entrepreneurs, as well as the institution’s commitment to supporting productive economic activities.
Industry stakeholders believe addressing the Nigeria credit gap will require stronger collaboration between financial institutions, insurers, regulators and policymakers to ensure that more Nigerians can access both credit and financial protection products needed for long-term economic security and sustainable growth.
