M-KOPA Gives 1M Nigerians Their First Credit Access

More than one million Nigerians who never qualified for a bank loan now have smartphones, credit histories, and pathways out of poverty thanks to M-KOPA's revolutionary financing model.

Since 2019, the asset financing company has deployed over ₦231 billion in credit to Nigerians locked out of traditional banking. The best part? 52% of borrowers are accessing formal credit for the very first time in their lives.

M-KOPA threw out the old banking playbook entirely. No collateral required. No guarantors. No proof of income paperwork that informal workers can never provide anyway.

Instead, customers make a small deposit and repay through daily micropayments that match how they actually earn money. A market vendor who makes ₦2,000 today and ₦500 tomorrow can adjust payments to her reality, not a bank's rigid schedule.

The company started financing solar panels but quickly realized smartphones were the real game changer. Nearly six in ten Nigerians remain offline simply because devices cost too much, creating a digital divide that traps people in economic exclusion.

Now 290,000 first-time smartphone owners can access the internet economy. Three quarters report earning more money after getting their devices, using them for mobile banking, online sales, and digital services that were previously out of reach.

The Ripple Effect goes far beyond individual borrowers. M-KOPA employs over 11,000 sales agents nationwide with a retention rate of 99.9%, meaning these aren't exploitative gig jobs but stable income sources. The company spent ₦27.4 billion with local suppliers last year and paid over ₦2.5 billion in taxes, pumping resources into Nigerian communities.

Women represent 33% of borrowers, gaining financial independence in a country where traditional banks often require a husband's permission for loans. Daily micropayments give them control over repayment without explaining every naira to gatekeepers.

Cash loans are now growing faster than device financing as M-KOPA uses smartphone repayment history to build credit scores for people who were previously invisible to the financial system. Small traders facing inflation can access working capital repeatedly once they prove reliability.

The model works because of smart technology, not harsh debt collection. Phones can be temporarily restricted if payments stop but still allow emergency calls, and struggling customers can return devices for deposit refunds. Default rates remain in the single digits.

M-KOPA plans to expand from six states to twenty within five years, unlocking over ₦1 trillion in credit for Nigerians the banking system left behind.