What’s Standing Between Nigerian Businesses and Access to Finance?
Fewer than one in twenty Nigerian MSMEs have access to bank credit. That’s according to the World Bank, which also notes that loans are often short-term and costly, while collateral requirements exclude many viable businesses from accessing credits.
It’s no surprise, then, that the PwC Nigeria MSME Survey 2024 found that 35% of MSMEs identified inadequate access to finance as the biggest challenge affecting their businesses. The report also cites the International Finance Corporation (IFC), which estimates that Nigerian MSMEs face an unmet financing need of approximately ₦13 trillion ($32.2 billion).
What this means is that, many businesses have the potential to grow, but without timely access to finance, seizing opportunities can be difficult.
Here is the challenge. Lending requires trust. Businesses need lenders who are willing to provide financing, while lenders need enough confidence that loans can be repaid. That confidence is built on reliable information, effective lending systems and an environment that supports responsible lending.
So, what will it take to close Nigeria’s credit gap?
That was the focus of a panel session at the recently concluded Nigeria Fintech Forum 2026 (5th edition), where we joined other industry leaders to discuss what it will take to build a credit economy that works at scale in Nigeria.
The discussion reinforced that improving access to credit isn’t simply about approving more loans but about strengthening the systems that make responsible lending possible.
The panel highlighted several areas that need attention:
Better information for better lending decisions
Financial institutions rely on information to assess loan applications. The discussion explored the growing role of alternative data alongside traditional credit information, recognizing that a broader picture of a borrower can help lenders make more informed credit decisions.
Stronger systems that support lending
The panel also highlighted the importance of credit infrastructure. The systems that help verify borrowers, process loan applications and share credit information. When these systems are efficient, lending becomes more reliable and easier to scale.
Affordable funding for sustainable lending
Another key point was the cost of capital. Financial institutions need access to funds before they can lend. When those funds are expensive to obtain, the cost of borrowing can also become a challenge for businesses.
A stronger environment for SME lending
The discussion recognized that expanding credit to small and medium-sized businesses comes with unique challenges. Building a lending ecosystem that supports SMEs while managing risk responsibly is an important part of closing the access to finance gap.
Clear regulations help lending grow responsibly
The panel also highlighted the importance of regulatory clarity. Simply put, financial institutions need clear and consistent rules that guide how credit is provided. When those rules are well defined and predictable, they create a more transparent environment for both lenders and borrowers, helping the credit ecosystem grow responsibly.
While building a credit economy requires collaboration across regulators, financial institutions and technology providers, businesses need solutions they can access today. Closing the credit gap doesn’t happen through one policy or one institution. It happens every time a viable business can access the financing it needs to keep operating, seize new opportunities or invest in growth.
At Vale, we believe that businesses should have access to financing that helps them move forward with confidence. That’s why our business lending solutions are designed around the challenges businesses face.
A business waiting for customer payments may need Invoice Discounting to improve cash flow. Another looking to purchase equipment can benefit from Asset Finance, while businesses managing day-to-day operations may require Working Capital. For suppliers executing large contracts, LPO Financing can provide the funding needed to deliver without putting pressure on existing cash flow.
These solutions may not close Nigeria’s credit gap, but they represent the kind of practical, accessible financing that helps businesses overcome immediate challenges, grow with confidence and contribute to a stronger, more inclusive credit ecosystem. And that’s our commitment at Vale: making financing more accessible so businesses can seize opportunities, grow and thrive.
Now to the News
There Really Is Something About the Number 5
This December, Vale turns five.
While the celebrations are still a few months away, the countdown has officially begun and so has the first of many surprises.
We’re excited to announce that our 5 for 5 Referral Campaign starts soon, our anniversary campaign that rewards you for inviting others to join the Vale community.
It’s the first step in a season filled with exciting activities, rewards and experiences as we celebrate five years of building, growing and making finance work better for you.
This is just the beginning. More surprises are on the way.
The road to five has only just begun.
Stay close.
CBN Cuts One-Year T-Bill Rate as Bids Hit ₦3.62tn
The Central Bank of Nigeria (CBN) recorded overwhelming investor demand at its latest Treasury Bills auction, with total subscriptions reaching ₦3.62 trillion against ₦700 billion on offer. The strongest interest was in the 364-day Treasury Bill, which attracted ₦3.38 trillion in bids, almost seven times the amount offered—highlighting continued investor preference for longer-term government securities.
Despite the surge in demand, the CBN reduced the stop rate on the one-year Treasury Bill from 17.66% to 17.35%, signaling that investors were willing to accept lower yields to secure longer-dated investments. The apex bank also allotted more than ₦1.02 trillion for the one-year paper, significantly above its initial offer, while leaving the stop rates on the 91-day and 182-day bills unchanged at 16.30% and 16.50%, respectively.
The latest auction continues a trend seen throughout July, where institutional investors have consistently favored one-year Treasury Bills. Analysts say the lower stop rate reflects stronger liquidity in the financial system, allowing investors to accept slightly lower returns while the CBN increases borrowing through Treasury Bills as part of its ₦5.8 trillion third-quarter issuance programme.
Although the one-year stop rate declined, Treasury Bills remain attractive to investors. The effective yield on the 364-day instrument is still close to 21%, making it the highest-yielding option among the available maturities and reinforcing its appeal to institutional investors seeking relatively secure returns.
IMF Warns Financial Repression Is Rising as Governments Face Growing Debt Pressures
The International Monetary Fund (IMF) has warned that financial repression has reached its highest level in decades as governments with rising debt increasingly struggle to reduce fiscal pressures through conventional measures. According to a new working paper, the trend has accelerated since the global financial crisis, with governments relying more on policies that channel private savings into public debt at lower borrowing costs.
The IMF said governments may increasingly turn to financial repression when political support for fiscal consolidation, structural reforms and debt restructuring is limited. While such measures can help ease fiscal pressures, the Fund warned that prolonged reliance on them could weaken financial development, reduce private investment and slow long-term economic growth.
For Nigeria, the report comes as the country continues to grapple with rising public debt and high borrowing costs. Data from the Debt Management Office shows Nigeria’s public debt rose to ₦159.28 trillion as of December 31, 2025, while the CBN projects debt will reach 34.68% of GDP by the end of 2026.
Nigeria has also experienced a period of aggressive monetary tightening, with the Monetary Policy Rate rising to 27.5% by the end of 2024 before being reduced to 26.5% in February 2026 as inflation moderated. The IMF’s findings underscore the trade-offs governments face in managing high debt while supporting investment and economic growth.
CBN Mops Up ₦7.18tn in July OMO Auctions
The Central Bank of Nigeria (CBN) withdrew ₦7.18 trillion from the financial system through Open Market Operations (OMO) auctions in July, marking a 48.57% decline from the ₦13.96 trillion sterilized in June. The drop was largely driven by fewer auctions, with the apex bank conducting three sales in July compared to seven in June.
Despite the lower monthly total, July’s auctions were significantly larger on an individual basis. The CBN offered ₦600 billion at each of the three auctions but attracted strong investor demand, recording an average oversubscription of about four times the amount offered. The July 28 auction stood out, with ₦3.5 trillion allotted, making it the largest single OMO sale across both June and July.
June, by comparison, relied on more frequent auctions to absorb excess liquidity. Across seven sales, the CBN accepted ₦13.96 trillion out of ₦15.27 trillion in investor bids, reflecting sustained oversubscription throughout the month. June’s average oversubscription stood at 3.16 times the amount offered.
The 127-day OMO bill remained the most sought-after instrument during the period, attracting the highest demand in both months. Stop rates ranged between 20.39% and 22.65%, with shorter-dated securities continuing to offer higher yields than longer tenors. Analysts say the figures show the CBN shifted from a strategy of frequent liquidity mop-ups in June to larger, less frequent auctions in July while continuing to manage excess liquidity in the financial system.
