Making Nigeria

While Stakeholder Honest Active Participation, Improved Identity Management & Data Validation as well as Active Legislation and Law Enforcement are critical to driving credit in the economy (as discussed in the first part of my article), there are yet several factors that should be addressed to create the ideal environment for achieving a credit-driven country.

These include:

Niche Market Specialization

To improve credit inclusion in the country, we must encourage market segmentation and specialization while also ensuring that key areas are not abandoned. We need to promote the study of different markets, what differentiates them and also create the framework to support businesses in such areas. For example, the market dynamics in Mile 12 market in Lagos may vary from that in Onitsha main market or Alade market in Ikeja.

Improved Borrower/Credit Education

Beyond having access to financial services, borrowing has been considered a mystery especially among small businesses across several sectors like agribusiness, manufacturing, education, etc. Research has shown that low access to credit and poor loan management are largely caused by inadequate borrower education which is often reflected in the quality of credit applications, engagement with providers as well as loan management. We need to adequately enlighten existing and prospective borrowers on how to access credit and manage the process carefully using multiple engagement strategies that speak to different strata of society.

[READ MORE: Three reasons why the naira is depreciating]

Promote Acceptable Technology and Process

When the process for accessing credit is simple and seamless, there will be a leap in the number of borrowers. Despite the influx of new technology and increase in Fintechs offering credit services, the number of unique borrowers has not grown at the expect loaned rate owing to the difficulty and the friction applicants face when requesting for loans. While some will prefer platforms such as mobile apps, others will favour USSD, web, social media or even paper. Hence, measures need to be put in place to provide credit to borrowers through the most suitable means for them.

Consistency of Support Services Providers and Vendors

We easily remember the credit providers and borrowers without considering the role of those that supply what the money is used for. For instance, asset finance, auto finance and mortgages depend largely on the quality of goods supplied. Quite often, people who purchase home appliances or equipment for business have an emotional connection to the performance of the item. If a vendor supplies a refrigerator purchased through a finance company and the appliance performs below par or packs up within a few months of purchase, the borrower will most probably “punish” the financial institutions by refusing to service the loan as agreed.

We need to always remember that people leverage the credit system to meet a need and credit is most impactful when borrowers can easily access goods and repay over a period. This system can only be supported by financial institutions and credit providers partnering with departmental stores, auto manufacturers, original equipment manufacturers or authorized dealers but the real success can only be recorded when the items are durable, of the highest quality and come with adequate warranty.

[READ ALSO: Akotex Nigeria’s Henrich Akomolafe’s Journey to Forbes Africa]

Culture Shift and National Orientation

If we want a credit-driven society with reduced emphasis on ‘cash only’ transactions, we must be open to the idea as a nation and educate ourselves. A situation where some have benefitted from the credit system in the country and lead a campaign against loans without properly educating the people is selfish. How do we expect genuine business owners to grow in the midst of dwindling opportunities? This is a collective effort and must be championed at all levels of government as well as the private sector and informal economy.

Deal book 300 x 250

Provision of false information is also a predominant issue within the small business space which often leads to wrong assessments and defaults. Our economy will do better if the right information is shared.

Ensure Provision of Value

As a credit provider, if I am unable to improve your current situation, I will not extend the credit. We must be seen and confirmed to have delivered value to everybody we provide financial solutions or give loans to. This is especially important for prospective borrowers who are over-leveraged and still request for loans to meet a pressing need. It is advisable to counsel such customers and provide the best financial solution that will ultimately ease their financial burdens. Building a working credit system should not increase the burden on borrowers or lenders but ease the pressure on an already over-stretched society. Let us always ask, “What value am I bringing to the table?”

At the forefront of making Nigeria a credit-driven society is Zedcrest Capital Ltd. Led by Adedayo Amzat, CFA, the company through a range of subsidiaries including Zedvance and Zed Cap Partners, is redefining the nation’s financial landscape by providing cutting edge services to its teeming customers nationwide. Currently a top-three player across the brokerage, investment and consumer lending spaces, Zedcrest Capital is championing the financial inclusion thrust with a technological approach.

[READ FURTHER: CCNN Plc leads this week’s gainers as losses mount on the NSE]



  1. By we, do you means Nigerians or nn partners ?. This royal we means nn partners and other foreigners operating in Nigeria or do you means that Nigerians will go on borrowing on credit and subsequent sorrowing.NOW DO WE GO ON CREDIT AND BORROWING LIKE THE AMERICAN AND THE BRITISH.the American national budget always have started to operates a deficit of about two/,third since the president of Obama and is growing,under Mr Regean,the americans started to operate deficit,one/third,and America have started to operates one/third. iN balance of trade for more than 30 yrs and it is still there and is growing,the American national treasury bond more than your GNP.
    WHICH MEANS THE AMERICAN DOLLAR IS BEING SUBSIDIZED AND MANUPULATED,you have no forex reserve and your operate more than two/third,in about 20 yrs from now and in future,the American citizens will find it difficult to serve all their debt,and the usuage of the dollar as the main forex utilization will come down to about 10 % to 20 % from it’s present position.NOW THIS IS WHY MR TRUMP HAVE NO CHOICE TO START A TRADE WAR,IF HE DOES NOT WAGES A TRADE WAR,THERE IS A CHANCE,AMERICAN WILL/OR CAN FACES A DEPRESSION,BY THE TIME THEY COME OUT OF THIS DEPRESSION,THEY WILL FALL OUT OF THE 20 TOP NATIONAL ECONOMY.THEY ARE GIVING THEIR ECONOMY MORE POWER BY ANY MEANS SINCE 2008.
    WE AFRICANS HERE IN THIS GEOGRAPHICAL ENTITY CALLED NIGERIA,WE DO NOT HAVE ANY THING COMMON WITH THOSE SO CALLED AMERICA,there are various initiative towards financial literacy,being done by the govt and the cbn and also,some individual Nigeria,by 2030,all act done by the govt and other Nigeria,will have full financial literacy.
    Do you mean we Nigerians should forgets on what we are,and who we are ?,and act as your country men,the tragedy or ironic of the t human life,no that two person are not the same,so with nations.THERE IS NO COUNTRY ARE THE SAME,EACH COUNTRY IS ENDOWN WITH UNIQUE QUALITY.this is why God gave the americans guns and they will not give up their gun,and they will go to other country,interferes in their internal affairs and destroy other country,like they did in Agfanistan and Iraq,or go to other culture and wipe-out the indigenous population,and install their kind,like they did in north America,they called the native America savages,and killed them off,when they finished, they imports black African to replaced those they killed


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