A new report by the World Bank has shown that more than half of Nigerian adults alongside others in low- and middle-income countries turned to borrowing in 2024 to meet personal and household needs. 

According to the Global Findex 2025 report, 59% of adults accessed credit in one form or another, underlining both the growing importance of borrowing and the uneven financial terrain many Nigerians still navigate.

The data, drawn from 139 economies worldwide, reflects a complex credit landscape shaped by both necessity and limited access to formal financial institutions. For Nigeria, it paints a picture of a nation where borrowing is common, but formal credit remains out of reach for many.

A nation borrowing from all corners

While borrowing itself has become more widespread, the type of credit accessed varies widely. Only 24% of Nigerian adults borrowed through formal channels like banks, credit unions, or mobile money services. A far larger group—31%—relied on family and friends, with 21% using this informal method exclusively.

In between were semi-formal systems such as local savings clubs and rotating credit associations, which accounted for 5% of borrowers. An additional 12% turned to other sources, including “buy-now-pay-later” services and grocery credit.

These patterns are not unique to Nigeria but are pronounced across Sub-Saharan Africa, where informal borrowing continues to dominate due to lack of trust, accessibility issues, and the high cost of formal lending.

Who borrows and how?

The report also highlights important disparities across gender, income, and location. Nigerian women, for instance, were more likely than men to borrow informally, continuing a trend seen across most regions except East Asia. 

Poorer households leaned heavily on informal credit, with those in the bottom 40% of the income bracket being 15 percentage points more likely to borrow from personal connections than the wealthiest 60%.

Rural Nigerians, facing fewer bank branches and limited digital infrastructure, were 19 percentage points more likely to rely on informal borrowing than urban residents. 

Meanwhile, people outside the workforce including unemployed and homemakers showed a stronger dependence on informal channels than salaried or self-employed individuals.

How mobile money is filling the gap

Mobile money platforms are slowly bridging the financial inclusion gap, especially in Sub-Saharan Africa. In 2024, 7% of adults in the region borrowed using mobile money accounts unchanged from 2021 but this channel now accounts for nearly 60% of all formal borrowing.

In countries like Kenya, Ghana, and Uganda, mobile credit has become a critical tool. Thirty-two percent of Kenyan adults took loans via mobile money in 2024, with most using it as their only borrowing method. Ghana and Uganda saw similarly high reliance.

In Nigeria, however, mobile money borrowing remains far less common despite a growing user base. Challenges such as regulatory hurdles, low financial literacy, and trust issues continue to limit its reach.

Even where mobile loans are used, the World Bank notes they are typically small, short-term, and come with high interest rates, useful for daily needs, but not transformative for long-term financial growth.

Credit Cards Still a Luxury

Credit card penetration remains strikingly low in Nigeria and other developing economies. 

Only 15% of adults globally reported using one in the past year, with far fewer in countries like Nigeria. In contrast, credit cards are the primary form of borrowing in more 

developed regions due to their dual role in facilitating both purchases and lending.

Still, formal borrowing has improved globally from 15% in 2014 to 24% in 2024 but with wide regional differences. While 34% of adults in East Asia borrowed formally in 2024, that number was just 12% in Sub-Saharan Africa and the Middle East.

Is a financial lifeline the full solution

The World Bank’s findings make it clear: borrowing is now a routine part of financial life for most Nigerian adults. But how they borrow and the consequences of it depends heavily on their income, gender, and where they live.

“Credit is a vital tool for financial resilience and opportunity,” the report noted, “but access remains uneven.”