Aug 6, 2025
While digital banking adoption continues to grow across Nigeria, understanding of credit scores remains dangerously low. A recent survey found that more than 65% of Nigerian adults have never checked their credit status or don’t even know they have a credit report. This lack of awareness has serious implications, especially for those seeking loans, apartment rentals, or even employment in certain industries.
As fintechs and digital lenders rise in popularity, credit scoring has evolved beyond traditional bank reports. Startups like Carbon, FairMoney, and Aella Credit now use alternative data—including phone usage, bill payments, and transaction patterns—to evaluate creditworthiness. While this approach increases access to credit for underserved populations, many users are unaware that their behavior is being scored, or how it affects their financial future.
The result is a growing disconnect between access to credit and understanding of how it works. Many first-time borrowers are shocked when they get rejected after a few missed payments or discover their score has dropped significantly. Worse, some unknowingly damage their score by applying for multiple loans at once or defaulting on short-term credit apps.
Experts believe the problem stems from a lack of financial education, both in schools and in daily life. Credit literacy campaigns are slowly emerging, but progress is slow. Fintech platforms are starting to introduce credit coaching tools and in-app tips to help users build healthy borrowing habits, but these features remain underutilized.
As Nigeria’s financial landscape becomes more digitized, understanding credit will be just as important as having access to it. Without widespread education, many consumers risk being locked out of future opportunities—simply because they didn’t know how the system works.
