In this episode, we tackle one of the most pressing challenges in Nigeria’s financial inclusion landscape: access to formal credit for the poor, rural, and informal communities. Our host Uche Enyioha (EFInA) sits down with guest Michael Ogbaa (CEO, Sytiamo Technology Limited) to unpack the barriers that leave millions of Nigerians excluded from the formal credit system.
We start by examining the data showing that only a tiny fraction of low-income and rural Nigerians have access to formal loans, despite a strong tradition of borrowing and repaying within informal groups. The conversation then moves to why credit is crucial for these segments and why many are hesitant to engage with formal financial products, often viewing them as inconvenient or irrelevant. Michael Ogbaa highlights the need for collaboration between government, the private sector, and communities to bring services closer to the underserved, stressing that reliance on existing infrastructure and community engagement is key to reducing operational costs and building trust. We also explore how Nigeria’s identity infrastructure (BVN, NIN, Voter’s Card) can be leveraged to simplify KYC, facilitating easier movement into higher-tier bank accounts for small businesses.
Ultimately, this episode argues that closing the credit gap requires not just innovation but bold policy moves; such as making loan repayment compliance a prerequisite for accessing certain government services, to enforce credit discipline and ensure the system works for all.
Listen to the full episode: https://youtu.be/Cm4y8KNGyac?si=9D59LblY-ipfjuoH
