Cash flow, not collateral, should drive lending to Nigerian businesses, says Moniepoint CEO
Moniepoint says Nigerian lenders should assess businesses based on how they earn and move money rather than the collateral they can pledge, as formal credit use among Nigerian adults increased to 10% in 2026 from 6% in 2023. The post Cash flow, not collateral, should drive lending to Nigerian businesses, says Moniepoint CEO appeared first on Nairametrics .
Moniepoint, a Nigerian fintech firm, contends that lenders should focus on a company's cash flow and money movement rather than the collateral they can offer when assessing creditworthiness. This stance aligns with the growing trend of formal credit use in Nigeria, which rose from 6% in 2023 to 10% in 2026, according to the EFInA 2026 Access to Financial Services in Nigeria (A2F) Survey.
Moniepoint CEO, Tosin Eniolorunda, emphasized the importance of trust in financial services, stating, “Access to financial services means little without trust.” The company advocates for the use of transaction data to make more informed lending decisions, as this approach could help Nigeria achieve the National Financial Inclusion Strategy’s target of 40% formal credit penetration.
Eniolorunda highlighted that transaction data can reveal businesses with consistent cash flows but lacking traditional collateral. Moniepoint's Impact Report revealed that 83% of its users experienced improved quality of life, and 85% felt more confident in achieving their financial goals. The company disbursed over $700 million to micro, small, and medium enterprises (MSMEs) in 2025, with three out of four borrowers accessing formal business credit for the first time.
The EFInA survey, which polled 18,679 adults across Nigeria's 36 states and the FCT, found that formal financial inclusion reached 73%, up from 64% in 2023. The survey also noted that women make up 36% of Moniepoint's loan book, a significant figure compared to the industry average of 15% to 25%. Despite the expansion in formal credit, financial vulnerability among borrowers is a concern.
Moniepoint's argument is based on leveraging transaction and cash-flow data to extend credit to small and informal businesses that may be excluded by collateral-based lending, while the EFInA survey found that increasing credit access is now mainly financing short-term financial needs rather than productive activities, making underwriting quality as crucial as access.
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