E-Financial
FirstBank’s ₦1 Trillion Digital Lending Milestone: A New Era of Inclusive Finance
For decades, Nigeria’s credit system posed significant challenges for small businesses and low-income earners, who often struggled to qualify for loans. Traditional banks demanded collaterals, guarantors, and endless paperwork, effectively shutting out a large portion of the population working in the informal economy.
FirstBank’s digital lending model flipped the script. With the launch of its digital lending model, the bank eliminated collateral requirements and slashed approval times from weeks to under five minutes. Loans now flow through multiple channels including *894# (the Bank’s USSD service), FirstMobile, LitApp, and the FirstMonie agent network, reaching market traders, civil servants, rural farmers and everyday individuals.
When FirstBank disbursed its first instant digital loan in August 2019, the transaction seemed like a bold experiment in tech-driven finance. Today, just six years later, the 131-year-old financial institution has announced cumulative disbursements of over N1 trillion in digital loans, a milestone that redefines the scale of retail digital lending in Nigeria’s financial services industry. This achievement reflects a deep shift in the way and manner Nigerians (salary earners, small and medium scale entrepreneurs, and the financially excluded) access loans. Credit, once a privilege for the wealthy or formally employed, is now a tap away for millions of Nigerians. FirstBank is helping people to grow their businesses, seize opportunities, and stay afloat in challenging times.
The numbers tell a compelling story: over 1.5 million unique borrowers have accessed loans through FirstBank’s digital platforms. For a banking system historically constrained by bureaucracy, and rigid risk models, the existence of collateral-free, instant digital loans comes as a relief. FirstBank has tapped into an unmet demand that traditional lending channels have struggled to capture. Its digital lending ecosystem, designed with Artificial Intelligence and Machine Learning, is tailored to assess high-risk segments that conventional credit scoring often overlooks.
In Nigeria, where over 40 percent of the adult population are still underbanked or completely unbanked, FirstBank is reshaping what inclusion looks like. The issue is not that Nigerians lack ambition or the ability to repay loans; it is that traditional banking systems have long struggled to assess their creditworthiness. Legacy models simply could not capture the financial realities of people outside the formal economy.
FirstBank is rewriting that narrative. Through a range of digital loan products (FirstAdvance for salary earners, FirstCredit for individuals without formal employment, and Agent Credit for micro-businesses operating within the FirstMonie Agent network), the bank is showing how financial inclusion can be scaled with smart, data-driven tools. These products are tailored to meet people where they are, using technology to bridge gaps that paperwork once made impassable.
FirstBank’s digital lending strategy deeply aligns with Nigeria’s broader financial inclusion goals. The 2023 EFInA Survey Report on Access to Financial Services in Nigeria (A2F) shows that 64 percent of the Nigerian population is now formally included in the financial system. Much of this progress is thanks to the increased adoption of mobile money and digital financial services, which are making banking accessible even in the most remote corners of the country.
The implications for micro, small, and medium enterprises (MSMEs) are profound. According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), MSMEs contribute nearly 50 percent to the country’s GDP and employ over 80 percent of the labour force, yet access to formal credit remains one of their greatest constraints. Through Agent Credit, FirstBank empowers small traders, artisans, and shopkeepers, many in areas far from any bank branch, with quick, affordable capital. This redistribution of financial access fosters economic participation and resilience at the grassroots.
The significance of this model extends beyond Nigeria. Across Africa, where an estimated 350 million adults lack access to formal financial services, FirstBank’s model offers a blueprint. African banks can leverage existing mobile adoption, behavioural data, and agent networks to build credit ecosystems suited to local realities, utilising digital lending as a bridge between exclusion and empowerment. It is proof that banks can be more than just gatekeepers; they can be catalysts for inclusive growth.
Industry analysts see FirstBank’s digital lending milestone as part of a broader evolution in Nigeria’s digital economy. In the past decade, the proliferation of mobile banking and agent banking has pushed the boundaries of accessibility. Yet, access to credit has remained a stubborn bottleneck. While savings and payment platforms grew quickly, lending stayed cautious. Banks were held back by the risk of defaults, weak identification systems, and limited credit histories. FirstBank is showing how that equation can be changed. By using data aggregation, alternative credit scoring models, and digital channels, the bank is unlocking new ways to assess risk and extend credit more confidently.
However, scaling digital credit also raises questions about sustainability and customer protection. In Kenya, for example, the rapid growth of digital loans over the past decade led to concerns about over-indebtedness, data privacy, and predatory lending practices by unregulated operators. Nigeria’s regulatory environment will need to balance innovation with safeguards, ensuring that customers are included and protected. FirstBank is ahead on this, leveraging AI not only for loan approvals but also for proactive risk management, ensuring defaults are minimised and repayment behaviour is nurtured responsibly.
Another dimension is the competitive landscape. Many fintech lenders have built reputations on offering fast, collateral-free loans. Yet, their model has often been characterised by exploitative interest rates and coercive repayment tactics, and regulatory headwinds. FirstBank, with its balance sheet strength, established reputation, and nationwide presence, has a competitive edge in blending the agility and flexibility of fintech with the resilience of traditional. With over N1 trillion digital loans successfully processed, the bank demonstrates the ability to serve Nigerians with speed while providing a level of institutional trust many customers still value.
The milestone also reflects a cultural shift in how Nigerians relate to their banks. For decades, traditional banks were perceived as conservative institutions, more interested in corporate customers than on individuals struggling with school fees, rent, or working capital for their shops. By embedding loan access into its digital channels and the FirstMonie Agent network, FirstBank has repositioned itself as a partner in everyday life. Whether customers use smartphones or basic feature phones, they now have equal access to credit and are no longer sidelined by technology gaps or administrative hurdles.
From an economic perspective, the ripple effects of FirstBank’s digital lending ecosystem are far-reaching. Beyond consumption smoothing for households, instant digital loans catalyse economic activity in local markets. Traders can restock quickly, farmers can purchase farm inputs when they are needed, and artisans are able to meet unexpected orders. When aggregated, these micro-impacts contribute to broader productivity and growth, helping to stabilise the informal economy that forms the lifeblood of local commerce.
As FirstBank marks this landmark achievement, it also confronts the responsibility that comes with scale. Digital lending at this magnitude is not merely a product line; it is a public utility shaping how millions experience financial security. Sustaining this momentum will require continuous innovation and a firm focus on customer empowerment, values that are deeply ingrained in the bank’s DNA.
Nigeria Insurance Deposit Corporation (NDIC) has guaranteed customers of insured commercial banks prompt recovery of their deposits in the event of risk liability or liquidation.
In addition, the corporation assured depositors of its statutory mandate, which includes supervising banks for risk assessment, ensuring ethical standards, and enhancing financial stability in the country.
Mrs Emily Osuji, executive director, Corporate Services, NDIC, gave the assurance during a Stakeholders Town Hall Meeting on customer protection regarding bank charges and deposits in Kano.
Mrs Osuji posited that the NDIC has, in recent times, demonstrated a strong commitment to protecting the hard-earned savings of Nigerians and sustaining confidence in the banking system.
She cited the cases of defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc, where depositors received their deposits promptly after meeting the relevant requirements.
The NDIC boss, however, reminded customers to link their Bank Verification Number (BVN) as a unique identifier to locate their alternate accounts, where their claims will be transferred.
The executive director affirmed that NDIC has expanded coverage to protect about 99 per cent of depositors in Nigeria, a deliberate policy aimed at protecting small savers, promoting financial inclusion, and enhancing trust in the banking sector.
She said, “The corporation fulfils its role through its core mandates of deposit guarantee, bank supervision, distress resolution and bank liquidation, all of which are geared towards protecting the hard-earned savings of Nigerians and sustaining confidence in the banking system.
“Our strapline, ‘Protecting your bank deposits!’, is more than mere words for us. We stand by this statement as a firm commitment to our mandate of ensuring that depositors have access to their hard-earned savings in the event of bank failure.
“This is a critical responsibility that we do not take lightly. This is especially so in times of financial uncertainty and distress, with the NDIC standing as a pillar of safety and reassurance for depositors, particularly the most vulnerable.”
Speaking on the concept of stakeholder engagement, Hawwau Gambo, head of Communication and Public Affairs, said the corporation was compelled to provide clarity, build trust and strengthen depositor confidence amid misconceptions.
Gambo noted that the recent revocation of the operating licences of some banks by the Central Bank of Nigeria, (CBN) and the current public discourse on banks’ recapitalisation efforts have reinforced the need for sustained stakeholder engagement.
She reminded that sustained awareness is pertinent to dust, given already heightened public interest and featured public confidence in the financial institutions.
“NDIC’s last Public Awareness Survey highlighted the need to enhance interpersonal communication channels to improve public understanding of deposit insurance. It is against this backdrop that the Stakeholders’ Town Hall Meetings were conceived as a structured, interactive platform for dialogue, education and feedback,” Gambo noted.
The Central Bank of Nigeria in its 2025 Fintech Policy Insight Report, has raised concern over Nigeria’s fintech sector heavily dependent on foreign investment, exposing it to swings in global markets.
The report said the sector has shown resilience despite global economic pressures, but warned that reliance on external capital leaves it vulnerable to market fluctuations.
It would be recalled that startups in the country raised $520m in equity funding in 2024, down from about $747m in 2019, when Nigeria captured roughly 37 per cent of all African startup investment.
This performance, amid significant global macroeconomic gyrations, underscores Nigeria’s position as a key hub for financial innovation. The sharp rise in interest rates in advanced economies during 2022 contributed to a slowdown in venture capital funding.
“These dynamics highlight the importance of developing domestic funding avenues, such as leveraging Nigeria’s capital markets, to reduce currency risk and sustain fintech growth,” the apex bank stated.
Olayemi Cardoso, CBN Governor, said Nigeria is undergoing a rapid and significant financial evolution. Over the past decade, the nation’s fintech landscape has grown from a handful of startups into one of Africa’s most vibrant innovation ecosystems.
“Even amid global economic headwinds, Nigerian fintech firms continued to attract investment and drive change. Today, with improved stability of our currency and domestic economy, it is clearer than ever that financial innovation can advance inclusion at scale,” the executive commented on the report.
In addition to funding, the central bank underscored Nigeria’s continued leadership in digital financial infrastructure. More than 25 per cent of all electronic transactions in Africa’s most populous nation are processed via real-time payment channels, with close to 11 billion transactions processed in 2024, up from five billion in 2022. The report described Nigeria’s instant payments platform, NIBSS NIP, as among the most mature and widely adopted globally.
The report also mentioned the need to strengthen system integrity and reputation, pointing to compliance reforms, anti-money laundering supervision, and consumer protection measures as key priorities for sustaining investor confidence.
By focusing on domestic funding, regulatory modernisation, and innovation infrastructure, the CBN aims to position Nigeria not only as a fintech front-runner but also as a rule-setter whose regulatory lessons are relevant to peer emerging and high-growth economies globally, the central bank said.
Stakeholders surveyed by the CBN also cited compliance costs as a significant challenge to innovation. According to the report, 87.5 per cent of respondents said that the cost of meeting regulatory and risk requirements significantly impacts their capacity to innovate, while delays in product approvals and regulatory timelines also remain major bottlenecks.
The report noted that 62.5 per cent of fintech firms plan to expand regionally, and there is strong support for regulatory pass-porting frameworks to enable compliant expansion into other African markets. However, the CBN warns that such cross-border growth requires a stable funding base and coordinated regulation.
After a few years abroad, I returned to Nigeria and faced a dilemma. Let me tell you all about it.
UBA
A few days ago, I was dragging my luggage through Murtala Muhammed International Airport. Everything felt bright and beautiful. Not necessarily in aesthetics, but in the vibrant colours, sounds, and energy all around. After three intensive years in the UK, I was finally back home. Ready for the hustle and bustle of Lagos life, and yes, the comfort of my parents’ home.
The plan was simple. Settle down and get my life on track. I’d sorted the job, and I had my person. But then came my dilemma. Money!. This doesn’t mean I was short of it or had too much of it. The real issue is where to actually keep and manage it in this country with daily dramatic happenings. With just two weeks left before I resumed at my new workplace, I had no time for long queues, endless paperwork, or the classic “Nigeria bank stress.” So, I needed an account, and I needed it fast.
So I turned to my best friend, Google, and typed, “Instant account opening in Nigeria.”
In less than a second, I was redirected to the United Bank for Africa instant account opening portal. A few taps later, and I had a fully functional account. Just like that. I could receive my funds, transfer my funds, and start building my financial life here again.
In less than a second, I was redirected to the United Bank for Africa instant account opening portal. A few taps later, and I had a fully functional account. Just like that. I could receive my funds, transfer my funds, and start building my financial life here again. Talk about ease, and this beautiful experience truly exemplified that definition
I was genuinely amazed. It felt too easy, almost suspiciously easy. But it was real, I mean, really soft like they were just thinking all about me while developing this new feature.
If you’re like me and pressed for time, avoiding unnecessary stress, or just ready to sort your finances without the hassle, consider this your sign.
UBA’s instant account opening is a game-changer. No queues to cut into your precious time. Just you and your phone, minutes away from being banked.
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Trust me, if I could do it between unpacking and settling in, you can do it too. Your future self will thank you.
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