KEY POINTS
- Mutual Benefits says only about 6 percent of Nigerian adults access formal credit.
- It argues true financial inclusion needs protection and savings, not just loans.
- Its microfinance arm grew its loan book to N1.558bn by the end of Q1 2026.
Mutual Benefits Assurance Plc has decried Nigeria’s wide credit gap, noting that only about 6 percent of adults can currently access credit through formal financial institutions. According to the company, that situation is far from ideal for an economy seeking inclusive growth.
Inclusion beyond loans and accounts
While the company acknowledged that access to credit drives economic growth, it stressed that financial protection mechanisms matter just as much in helping individuals and businesses withstand shocks. The Managing Director of Mutual Benefits Assurance, Femi Asenuga, said the firm’s portfolio gives Nigerians tools to build, preserve and protect wealth.
Moreover, Asenuga argued that genuine inclusion goes beyond opening accounts and taking loans. “True financial empowerment is achieved when individuals and businesses can access financing opportunities while also protecting their income, assets, families and future aspirations from unforeseen risks,” he said. Furthermore, he warned that a single shock can undo years of progress. “For many Nigerian families and business owners, a single unexpected event such as a medical emergency, fire incident, business disruption or loss of income, can erase years of financial progress,” he added, describing insurance and disciplined savings as critical pillars of resilience.
Microfinance arm widens Nigeria credit gap
To narrow the gap, the company pointed to the work of Mutual Microfinance Bank, which delivers financing tailored to small businesses, traders, salary earners, entrepreneurs and emerging enterprises. According to the firm, the bank had disbursed loans totaling N1.372 billion as of December 31, 2025, strengthening access to formal credit across its target segments.
In addition, the company said that momentum carried into 2026. The loan portfolio rose to N1.558 billion by the end of the first quarter, which reflects sustained support for productive economic activity. Therefore, the insurer framed the growth as evidence that practical, segment-focused lending can extend credit to the many Nigerians whom mainstream banks still overlook.
Ultimately, Mutual Benefits positioned its message as a call to rethink financial inclusion in broader terms. By pairing affordable credit with insurance and savings, the company argued, families and businesses can pursue their goals while they shield themselves from the risks that often wipe out hard-won gains. The firm listed education-focused plans, life assurance, savings products, motor and property insurance, and business protection cover among the solutions it offers to deepen that resilience across the country.
