Amidst Nigeria’s vibrant economy, a subtle transformation is taking place, gradually accumulating billions and trillions of naira annually. This emerging sector, referred to as nano-credit, especially within the telecommunications field, is transforming the way Nigerians obtain financial services. Although exact statistics regarding the scale of the nano-credit market are hard to pinpoint, significant data highlights a fascinating story of its swift expansion.
Between 2021 and 2025, Airtel Nigeria reported earnings of approximately $36 million from its “Buy Now, Pay Later” (BNPL) services, specifically for airtime and internet data. This impressive figure reflects a year-over-year increase of around 70%. Furthermore, Airtel Africa’s audited financial statements for the fiscal year ending March 31, 2025, revealed mobile money revenues totalling an astounding $770 million across 14 African markets.
“Unlike conventional loans that often involve lengthy application processes and stringent collateral requirements, nano-credit is automated, micro-sized, and operates at a high frequency.”
MTN Nigeria has also made significant strides in this arena. From 2019 to 2023, it is estimated that the company advanced about ₦5.6 trillion in airtime and data loans. In the first quarter of 2025 alone, MTN’s fintech revenue reached an estimated ₦36.1 billion, largely attributed to its airtime lending service known as Xtratime. Industry-wide estimates suggest that telecom operators in Nigeria collectively earn over ₦400 billion annually from airtime lending.
Every time a customer borrows airtime or data from their telecom provider, they are unwittingly participating in this expanding nano-credit industry.
The mechanics may appear straightforward—borrow ₦500 and repay ₦600 upon recharging—but when multiplied by millions of users engaging in this transaction daily, the scale becomes astonishing. This dynamic illustrates how telecommunications companies are quietly cultivating one of Nigeria’s fastest-growing credit markets.
What sets nano-credit apart from traditional lending is its unique structure. Unlike conventional loans that often involve lengthy application processes and stringent collateral requirements, nano-credit is automated, micro-sized, and operates at a high frequency. This innovation is made possible through the use of data analytics and minimal administrative costs compared to traditional financial institutions.
While banks and other financial entities grapple with challenges such as loan recovery and collateral verification, telecom companies possess a distinct advantage: real-time access to customers’ spending behaviours. This allows them to recover funds seamlessly as soon as customers top up their accounts. The numbers are staggering, and the potential for growth in this sector is immense.
Read also: Telecom sector posts 5.78% real growth in Q3 2025
In essence, the true credit revolution is already upon us, embedded within our SIM cards. The rise of nano-credit signifies a shift in how financial services are delivered, making them more accessible to the average Nigerian. As we move forward, it is clear that the telecom sector will play an increasingly pivotal role in shaping the future of credit in Nigeria.
This transformation not only enhances financial inclusion but also empowers consumers by providing them with immediate access to small amounts of credit when needed. The convenience of borrowing airtime or data on the go has become a lifeline for many, allowing them to stay connected and manage their finances more effectively.
As we delve deeper into this phenomenon, it becomes evident that the implications extend beyond mere convenience. The growth of nano-credit could potentially lead to broader economic benefits, stimulating consumer spending and driving innovation within the fintech space.
With the continued expansion of mobile networks and increasing smartphone penetration across Nigeria, the future looks bright for nano-credit. As more people gain access to these services, we can expect to see a ripple effect throughout the economy—one that fosters entrepreneurship and promotes financial stability.
Finally, while the nano-credit industry may operate quietly behind the scenes, its impact is profound and far-reaching. As Nigerians embrace this new form of credit, it is essential for stakeholders—including regulators and policymakers—to recognise its potential and ensure that it develops in a way that benefits consumers while mitigating risks. The journey of nano-credit in Nigeria is just beginning, and its trajectory promises to redefine how we think about finance in our everyday lives.
Dr Adeniyi Bamgboye, DBA, FCTI, FCA, FCCA, a dual-qualified chartered accountant, tax expert, and policy analyst, is the managing partner of Empyrean Professional Services, an audit, business, and financial advisory firm dedicated to enhancing its clients’ business value. 08060603156; [email protected]
