Nigerian women repay loans better than men, report shows

A common assumption about lending is that credit should flow to the people most likely to repay it. In Nigeria, the data suggests otherwise.

According to Credit Direct’s 2025 Nigeria Credit Landscape Report, which drew on loan-level data from approximately 300,000 of its active borrowers, women account for just 26% of loans disbursed, compared to 74% for men. Yet female borrowers consistently outperform men on repayment metrics. Their delinquency rate stands at 7.8%, significantly lower than the 10.9% recorded among male borrowers. They also borrow larger amounts on average, receiving ₦478,117 compared to ₦430,962 for men. 

The disparity becomes even more striking among married borrowers. According to the report, married women take larger loans than married men, averaging roughly ₦500,000 compared to ₦450,000, while maintaining lower delinquency rates.

Among the 300,000 people Credit Direct assessed, women received less credit than their repayment records suggest they deserve. But the gender gap is only part of the story. The more you look at the data, the more another question pushes through. What are Nigerians actually borrowing this money for?

The creditworthy borrowers are getting less credit

The relationship between access to credit and repayment performance is usually straightforward. Lenders want to minimise risk, which means directing capital towards borrowers who are more likely to repay. Yet the report paints a different picture.

The report shows that women represent barely a quarter of borrowers despite posting stronger repayment outcomes. Their lower delinquency rates suggest they are less likely to fall behind on payments, while their larger average loan sizes indicate they are capable of managing more substantial credit obligations. In lending terms, that is a low-risk, high-value borrower segment sitting largely outside the flow of available credit.

This pattern is not unique to Nigeria. Across several emerging markets, recent studies of microfinance institutions show that portfolios with a higher share of female borrowers consistently record lower default rates and fewer non-performing loans. What makes the Nigerian data notable is the scale of the gap between performance and access.

Credit has long been presented as a pathway to economic participation. It allows entrepreneurs to expand businesses, families to acquire productive assets, and workers to smooth income shocks. But that promise depends on who gets access to financing and how they use it.

The report suggests that many Nigerians are using credit for something far more immediate.

Borrowing to get through the month

Among the 300,000 borrowers surveyed by Credit Direct, the most common reasons people take loans are not business expansion, home ownership, or vehicle purchases. According to the report, they are rent, medical bills, and school fees.

Those three categories account for the largest share of borrowing activity in the report and reveal a reality that will feel familiar to many households. Credit is increasingly being used to manage everyday financial pressure rather than fund future growth.

The income profile of borrowers reinforces this picture. The report shows that nine out of ten borrowers earn less than ₦200,000 per month. The single largest borrower segment, accounting for 36% of all borrowers, earns between ₦50,000 and ₦99,999 monthly. Another 22% earn less than ₦50,000. For many of these households, borrowing is not a strategy for wealth creation. It is a way to bridge the gap between income and essential expenses.

In some cases, the report notes that a single loan disbursement can represent between a quarter and a half of a borrower’s annual income. When loans are primarily funding productive investments, they can generate future income that helps repay the debt. When loans are funding rent, healthcare, and education, repayment depends largely on wages that have already been stretched thin by inflation and rising living costs.

The result, at least within Credit Direct’s borrower base, is a lending portfolio performing two roles at once. It acts as a financial inclusion tool, but it also functions as an informal safety net for households struggling to keep up with basic expenses.

What the data says about Nigeria’s credit future

Taken together, these findings reveal a credit ecosystem filled with contradictions.

Women, who demonstrate stronger repayment behaviour, according to the report, continue to receive a disproportionately small share of lending. At the same time, millions of borrowers are turning to loans not to grow businesses or acquire assets, but to cover necessities that previous generations might have funded through savings.

If credit increasingly serves as a tool for household survival, expanding access becomes even more important. And if access remains uneven despite clear evidence of creditworthiness, the market risks leaving significant potential untapped. The report shows that female borrowers in Credit Direct’s data have a 7.8% delinquency rate, borrow larger amounts than men on average, and maintain that performance across income levels and marital statuses. For lenders, that is a low-risk borrower segment that is currently receiving less than a quarter of available credit.

Another thing to pay attention to in the report is data from the Buy Now, Pay Later (BNPL) market, where women participate at higher rates than in traditional lending. The report attributes this to the fact that BNPL products require less documentation and no collateral, two barriers that have historically pushed women out of the formal credit conversation, such as banks. The result is a narrower gender gap and stable repayment rates. It suggests that when lenders remove structural friction, more women show up.

The report forecasts that conditions should improve in 2026, with inflation easing to around 14.11% and GDP growth projected between 4.31% and 4.40%. If those numbers hold, the pressure on households should ease gradually, and credit may start doing more of the aspirational work it has long been associated with. 

But right now, in 2026, Credit Direct’s data show that for most Nigerians in the formal credit market, a loan is not a stepping stone. It is what keeps them standing.

Read the full Nigeria Credit Landscape Report here

Last updated: June 19, 2026