Nigeria’s formal credit market continues to show a persistent gender imbalance, with women receiving just 26 per cent of total loans despite demonstrating stronger repayment performance and lower default rates than men, according to Nigeria Credit Landscape Report.
The report, which analysed loan-level data from about 300,000 active borrowers, found that male borrowers account for 74 per cent of total disbursements, underscoring a wide structural gap in access to credit even as women consistently emerge as lower-risk customers.
It revealed that women not only borrow less frequently but also outperform men on key credit quality indicators.
Average loan size for female borrowers stood at N478,117, compared with N430,962 for men.
However, women recorded a delinquency rate of 7.8 per cent, significantly lower than the 10.9 per cent observed among male borrowers.
The report noted that this pattern challenges conventional lending assumptions that associate larger loan sizes with higher credit risk. Instead, Nigerian female borrowers were found to manage larger loan amounts more efficiently while maintaining stronger repayment discipline.
A similar trend was observed among married borrowers, who account for 91.9 per cent of total loans disbursed.
Within this group, married women borrowed an average of about N500,000, compared with N450,000 for married men, yet still recorded lower default rates.
Married men, however, were found to have a delinquency rate 2.63 percentage points higher than their female counterparts.
Credit Direct said the findings highlight a significant mispricing of risk within Nigeria’s lending ecosystem, where lower-risk borrowers, particularly women, remain underrepresented in credit allocation.
“The data is telling us something the market hasn’t fully priced in. For a growing number of Nigerians, credit is no longer a convenience; it’s how households manage essential costs from one month to the next,” said Head of Research and Business Intelligence at Credit Direct, Emeka Ucheaga.
He added that some of the most reliable borrowers in the country are often those least served by the formal financial system, stressing that addressing the gap represents both a commercial opportunity and a structural necessity for lenders adopting data-driven models.
Beyond gender disparities, the report also highlights the growing role of credit in household survival.
Rent, medical expenses and school fees were identified as the primary drivers of borrowing, indicating that credit is increasingly being used to meet essential living costs rather than discretionary spending.
The report further showed that more than 90 per cent of borrowers earn below N200,000 monthly, with the largest segment, 36 per cent, earning between N50,000 and N99,999.
It also found that households earning below ₦50,000 monthly often take loans amounting to between 25 and 50 per cent of their annual income, reflecting rising financial pressure amid inflation and currency depreciation.
On the emerging buy-now-pay-later (BNPL) segment, the report found that self-employed Nigerians account for 45 per cent of transactions, compared to 29 per cent among salaried workers, reversing the traditional credit profile.
Self-employed borrowers also recorded higher average spending at N276,213, compared with N230,900 for salaried users, largely driven by purchases of productive assets such as smartphones and work tools.
Smartphones accounted for 70 per cent of BNPL gadget purchases, with mid-range Android devices dominating the category.
Repayment data showed that 61.5 per cent of customers opted for five- to six-month repayment tenors, with 42.7 per cent selecting the maximum six-month term, indicating widespread preference for extended repayment schedules amid income constraints.
Overall, the report points to a structurally shallow credit market in Nigeria, where financial inclusion remains relatively broad but access to formal borrowing is limited.
While over 64 per cent of adults are financially included, only about 6 per cent access formal credit, and private sector credit stands at just 13.1 per cent of GDP.
Within this constrained environment, Credit Direct argues that women represent an underutilised, lower-risk borrower segment with strong repayment behaviour but limited access to financing.
The company said it is responding to this gap through its Micro Trader Loan product, a bundled credit offering that integrates micro-loans with pension contributions, health insurance, and micro-investment options.
According to the firm, women make up about 80 per cent of users of the product, reflecting both demand and the underserved nature of the segment.
