A credit expert and President of the Money Lenders Association (MLA), Gbemi Adelekan, has said that many Micro, Small, and Medium Enterprises (MSMEs) in Nigeria are building up negative credit profiles that could bar them from accessing the capital they desperately need to grow.
Adelekan, who stated this in an interview with the News Agency of Nigeria (NAN) on Sunday, described credit health as not just a financial record but as a business passport that can unlock doors or keep them firmly shut.
“It’s no longer just about borrowing money; it’s about what your credit story says about your business. Many MSMEs don’t realise that their borrowing behaviour today will determine whether they can scale tomorrow,” Adelekan said.
According to him, one alarming trend among digital money lenders in Nigeria is the revolving-door pattern where individuals, often already indebted, move from one loan app to another in search of quick funds.
This behaviour, he said, leaves a trail of unpaid debts and tarnishes the borrower’s credit reputation—something lenders are no longer ignoring.
“Most licensed lenders in the country now check your credit report with Central Bank of Nigeria (CBN)-approved bureaus before making a loan decision. And once you’re flagged for defaults, your chances of accessing future loans, especially with decent terms, drop significantly,” he explained.
“MSMEs often operate with tight cash flows and limited capital, so maintaining a good credit profile is not a luxury; it’s a necessity. Poor repayment behaviour limits your ability to raise funding, expand operations, or even negotiate favourable interest rates,” he said.
He explained that lenders ranging from traditional banks to fintech firms and cooperatives are increasingly leveraging technology and data to assess risk.