As urbanization continues to reshape Nigeria’s economic landscape, digital financial platforms are playing a crucial role in bridging the credit gap for small-scale entrepreneurs and the self-employed.
Recent data shows that by 2024, more than 128 million Nigerians—over half of the population—reside in urban centres such as Lagos, Kano, and Abuja in search of sustainable livelihoods.
Margaret Banasko, Head of Marketing at FairMoney Microfinance Bank (MFB), highlighted this trend in a statement on Tuesday. She noted that many urban dwellers are young entrepreneurs eager to turn their skills into income but are often constrained by the strict requirements of traditional banks.
“With only a mobile phone, internet connection, and a Bank Verification Number (BVN), Nigerians can now access a wider range of financial tools designed to support their daily needs and long-term goals,” Banasko said.
She cited the example of Aigbe Osasere, a migrant from Benin City who established a fish farming business in Ijegun, Alimosho, Lagos. Osasere’s business required rapid cycles of purchasing fingerlings and feed—often stalled by a lack of immediate liquidity.
“Through the FairMoney app, Osasere gained access to digital banking services immediately after completing BVN verification. The availability of instant loans gave him the flexibility to restock quickly and maintain continuous production,” Banasko said.
Banasko also noted that digital tools are helping informal traders formalize their operations. For Osasere, this included opening a bank account and obtaining a physical debit card, enabling bulk buyers to pay him directly.
“This shift has provided small business owners with clearer financial records and better visibility into daily revenue, which were previously difficult to track in cash-heavy informal sectors,” she added.
In addition to credit, the platform’s savings features are helping entrepreneurs build capital for expansion. Osasere reportedly uses these features to save portions of his daily sales to increase his fish tank capacity.
“Beyond supporting his business, the platform has become part of his everyday life, facilitating money transfers to family, bill payments, and the purchase of airtime and electricity tokens,” Banasko said.
FairMoney reiterated its commitment to being a dependable partner for Nigeria’s growing population of freelancers, traders, and young workers who need speed and flexibility to navigate the urban economy.
