Experts have expressed concern that only about 6 percent of Nigerians currently have access to formal credit, highlighting a major gap in the country’s financial inclusion landscape.

The figure underscores ongoing challenges in expanding access to loans from regulated financial institutions, particularly for small businesses and individuals in the informal sector.

According to financial analysts, limited credit access is affecting entrepreneurship, business expansion, and overall economic growth, especially among youth and small-scale traders.

They noted that many Nigerians still rely on informal lending systems, which often come with high interest rates and limited consumer protection.

Stakeholders say barriers such as lack of collateral, low credit history, and strict lending requirements continue to restrict access to formal credit facilities.

The situation has also been linked to wider issues in financial literacy and banking penetration across rural and underserved communities.

Economists argue that improving access to credit will require reforms in credit scoring systems, expansion of digital lending platforms, and stronger regulatory support for inclusive finance.

Financial institutions are being urged to develop innovative lending models that can accommodate informal workers and small businesses without compromising risk management standards.

Development experts say increasing access to formal credit could significantly boost job creation and reduce poverty levels across the country.

The report highlights the urgent need for coordinated efforts to deepen financial inclusion and strengthen Nigeria’s credit ecosystem.