Nigeria’s growing dependence on informal lenders has again come under scrutiny as the Chief Executive Officer of eTranzact Plc, Niyi Toluwalope, urged stakeholders to urgently strengthen the country’s credit access framework.
Toluwalope made the call at a high-level stakeholders’ forum focused on the future of payment systems, where industry players examined the balance between regulation, innovation and financial inclusion. He warned that the absence of a structured and reliable lending ecosystem continues to expose many working Nigerians to predatory lenders.
Brandspur Banking News Desk reports that the eTranzact boss noted that many Nigerians resort to unregulated lenders due to urgent financial needs, often accepting harsh repayment terms that trap them in cycles of debt. He stressed that the situation persists because millions of workers lack access to legitimate and affordable credit options.
According to him, Nigeria must intentionally design a system that enables individuals with traceable income streams, including low- and middle-income earners, to access formal credit. He argued that when structured credit becomes accessible, the influence of loan sharks would naturally decline.
Toluwalope also pointed to the Bank Verification Number (BVN) as one of the country’s strongest financial data systems, describing it as secure, reliable and deeply integrated into financial transactions. However, he emphasised that Nigeria must go beyond BVN by strengthening the National Identification Number framework to build a comprehensive and unified identity system.
He further highlighted the importance of linking identity, income and location data to improve accountability and support sustainable credit systems. Drawing comparisons with developed economies, he noted that advanced credit environments thrive on fully traceable financial footprints and integrated identity structures.
The eTranzact chief also advocated the adoption of identity tokenisation to eliminate repetitive Know Your Customer processes across financial institutions. He explained that a streamlined and secure identity system would improve efficiency across banking, utilities, credit services and other financial platforms.
Industry observers believe that strengthening Nigeria’s credit and identity infrastructure could significantly boost financial inclusion, reduce dependence on informal lenders and promote a more stable lending environment for individuals and businesses.
