Moniepoint Group says it disbursed more than ₦1 trillion in loans to about 70,000 Nigerian businesses in 2025, underscoring the growing role of fintechs in filling the country’s small business credit gap as traditional banks tighten lending.
The disclosure was made in Moniepoint’s 2025 Year in Review report, which highlighted how the company used transaction data and point-of-sale (PoS) activity to extend credit to small and informal businesses that are typically excluded from conventional financing.
The lending programme targeted micro, small, and informal enterprises across Nigeria, many of which have limited access to bank loans due to lack of collateral, formal documentation, or credit history. By relying on real-time payments data instead of traditional credit scores, Moniepoint was able to assess cash flow, turnover, and repayment capacity more accurately.
Measurable impact on business growth
According to the report, businesses that accessed Moniepoint loans recorded an average 36% increase in transaction value, suggesting that the capital injection translated into higher sales and operational expansion.
With ₦1 trillion disbursed across 70,000 businesses, the average loan size stood at approximately ₦14.3 million, indicating a focus on meaningful working capital rather than micro-loans. This level of financing is significant for informal and semi-formal businesses, many of which struggle to secure loans above single-digit millions from traditional lenders.
The majority of beneficiaries were everyday businesses that form the backbone of Nigeria’s informal economy. These included provision stores, supermarkets, building materials traders, raw food sellers, and water and drink wholesalers—sectors that rely heavily on cash flow and fast inventory turnover.
Data-driven lending over traditional credit models
Moniepoint’s approach reflects a broader shift in fintech lending across Africa, where alternative data is increasingly being used to assess creditworthiness. Instead of demanding collateral or audited financial statements, the company analysed merchants’ transaction histories, PoS volumes, and payment patterns to determine loan eligibility and limits.
This model has proved particularly effective in Nigeria, where a large share of economic activity takes place outside the formal banking system. Many small businesses operate profitably but remain invisible to banks due to limited documentation.
By embedding credit directly into its payments infrastructure, Moniepoint positioned lending as an extension of daily business activity rather than a separate banking process.
A broader year of scale for Moniepoint
The ₦1 trillion lending milestone capped a year of rapid growth for the fintech. In 2025, Moniepoint processed eight out of every ten in-person payments in Nigeria, handling more than ₦412 trillion in transaction value across over 14 billion transactions, according to the report.
The scale of its payments business has given the company a significant data advantage, allowing it to price risk more accurately and expand credit without aggressively increasing defaults.
Moniepoint also strengthened its regulatory standing during the year. Its Nigerian subsidiary, Moniepoint Microfinance Bank, was upgraded to a National Microfinance Bank licence, enabling it to operate across the country and expand its range of financial services.
Fintechs step in as banks pull back
Moniepoint’s lending activity comes at a time when Nigerian commercial banks have been cautious about extending credit to small businesses, citing rising risks, regulatory pressures, and macroeconomic uncertainty.
As a result, fintechs with deep visibility into transaction flows are increasingly stepping in to support SMEs and informal traders—segments widely recognised as critical to employment and economic growth.
With ₦1 trillion already deployed and payments volumes continuing to rise, Moniepoint’s data-led lending model is emerging as a key pillar of Nigeria’s evolving digital financial ecosystem, particularly for businesses long underserved by traditional banking.
