In a significant milestone for financial inclusion, Moniepoint Inc. revealed in its 2025 Year in Review report that it disbursed over ₦1 trillion ($720 million) in credit to approximately 70,000 small businesses over the past year.
This aggressive lending push comes as traditional Nigerian banks have historically tightened credit to the private sector, focusing instead on corporate lending and government securities. By leveraging real-time payments data and POS activity, Moniepoint is successfully filling the “credit gap” for informal and semi-formal businesses that often lack collateral or formal financial records.
1. The Impact of Credit on Business Growth
The most striking figure from the report is the measurable effect of these loans on the “real economy.” According to Moniepoint, businesses that accessed credit experienced an average growth of 36% in transaction value.
This suggest that these loans—averaging roughly ₦14.3 million per business—are being used for high-impact activities like inventory expansion, equipment upgrades, and operational scaling, rather than just simple debt servicing.
2. Who is Receiving the Funding?
The ₦1 trillion was not concentrated in tech or high-growth startups, but rather distributed across the backbone of Nigeria’s everyday trade.
Top recipients by business category:
• Provision Stores: 15% (The largest share of credit)
• Building Materials Sellers: 8%
• Raw Food Traders: 7%
• Drinks & Water Wholesalers: 7%
• Supermarkets: 5%
By targeting these “neighborhood pillars,” Moniepoint is essentially powering the daily supply chain that feeds and builds the nation.
3. A Record-Breaking Year for Payments
The lending surge was supported by Moniepoint’s massive scale in the payments space. In 2025, the company cemented its position as Nigeria’s largest merchant acquirer:
• Market Share: Moniepoint now powers 8 out of every 10 in-person payments made across Nigeria.
• Transaction Volume: The company handled more than 14 billion transactions in 2025.
• Total Value: The banking and payments subsidiary processed a staggering ₦412 trillion in transaction value during the year.
4. The Data Advantage over Traditional Banks
Traditional banks have struggled to serve MSMEs due to a lack of data for risk assessment. However, fintechs like Moniepoint and competitors like Paystack (which recently acquired a Microfinance Bank license) are using “alternative data” to underwrite loans.
By analyzing POS activity, transaction frequency, and seasonality patterns, Moniepoint can accurately appraise a shop owner who has no formal credit score. This data-first approach allows for quick approvals (24–72 hours) and lower collateral requirements, making credit accessible to the 94% of MSMEs that have historically been shut out of the financial system.
5. Future Outlook and Risk Management
While lending ₦1 trillion raises questions about risk and recovery in a high-inflation environment, Moniepoint’s Series C funding round (which raised over $200 million in late 2025 from investors like Google and Visa) has provided the capital cushion needed to scale safely. As the company expands into the UK and other African markets, its 2025 performance proves that serving the “informal” sector is not just a social good, but a massive business opportunity.
