Firm Backs Cash Flow Lending as Formal Credit Access Rises
Nume Ekeghe Moniepoint has backed cash flow-based lending as a pathway to widening access to formal credit, following findings by Enhancing Financial Innovation and Access (EFInA) that formal credit penetration
Moniepoint, a firm specializing in cash flow-based lending, supports the expansion of formal credit access, citing the results of a recent survey by Enhancing Financial Innovation and Access (EFInA). According to the survey, formal credit penetration in Nigeria has nearly doubled since 2023, reaching 10% nationally. This significant rise aligns with Moniepoint's lending model, which evaluates borrowers based on their businesses' revenue and cash flow, rather than relying heavily on collateral.
The survey, titled Access to Financial Services in Nigeria (A2F) 2026, also highlighted notable improvements in financial inclusion, particularly among women business owners and farmers. Women's access to formal credit rose from 67.5% to 76.3%, while the inclusion rate for women farmers increased from 42.7% to 53.6%. Currently, formal financial inclusion stands at 73%, representing an estimated 87.2 million adults across all 36 states and the Federal Capital Territory of Nigeria.
Moniepoint's Co-Founder and Group Chief Executive Officer, Tosin Eniolorunda, commented on the findings, stating that they reflect the company's experience. Eniolorunda emphasized that EFInA's efforts since 2008 have consistently indicated that access to financial services lacks meaning without trust. Trust, once lost, is challenging to restore, and Moniepoint has prioritized building this trust in its operations.
Moniepoint reports that 83% of its users have experienced improved quality of life, while 85% feel more confident in achieving their financial goals.
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