Small and medium-sized enterprises in Nigeria are increasingly locked out of traditional bank credit due to inadequate financial record-keeping, according to Ovaloop CEO.
The fintech executive pointed to a structural disconnect between the availability of capital and the ability of smaller firms to demonstrate creditworthiness to lenders.
This observation aligns with a broader shift in Nigeria's corporate financing landscape, where commercial papers are increasingly displacing bank loans as the primary source of credit for businesses.
The transition reflects a market adaptation to the persistent shortage of available liquidity for smaller entities, even as inflationary pressures show signs of easing.
Nigerian businesses continue to face severe credit constraints, highlighting a gap between macroeconomic stabilization and corporate liquidity.
The persistent shortage of available credit for SMEs suggests that while headline inflation metrics may be improving, the transmission of liquidity to the real economy remains uneven.