By Ayomide Otitoju
FirstBank has announced that it has disbursed over ₦1 trillion in digital loans since the launch of its instant lending platform in 2019, marking a historic milestone in Nigeria’s financial services sector and redefining access to credit for millions.
For decades, Nigeria’s credit system excluded a large segment of the population, especially small business owners, informal workers, and low-income earners, who were unable to meet traditional banks’ collateral and paperwork requirements. FirstBank disrupted that model by introducing collateral-free, instant digital loans accessible through its USSD service (*894#), FirstMobile app, LitApp, and the FirstMonie agent network.
What began as a bold experiment six years ago has now transformed into a mass lending platform. The bank disclosed that over 1.5 million Nigerians have benefitted from its digital loan products, including FirstAdvance for salary earners, FirstCredit for individuals without formal employment, and Agent Credit for micro-businesses. Approval times, once weeks-long, have been reduced to under five minutes, making loans available to market traders, civil servants, rural farmers, and artisans alike.
Industry analysts say the milestone represents a deep shift in Nigeria’s financial landscape. Credit, previously the preserve of the wealthy or formally employed, is now within reach of everyday Nigerians. With artificial intelligence and machine learning powering its lending decisions, FirstBank has been able to serve high-risk segments that conventional credit scoring systems often exclude.
This development comes at a crucial time for Nigeria, where more than 40 percent of adults remain underbanked or unbanked. According to the 2023 EFInA Access to Financial Services survey, 64 percent of Nigerians are now formally included in the financial system, thanks largely to the growth of mobile money and agent banking. FirstBank’s model aligns with the Central Bank’s financial inclusion agenda and provides a lifeline to micro, small, and medium enterprises (MSMEs), which contribute nearly half of the nation’s GDP and employ over 80 percent of the labour force but still face persistent barriers to credit.
By embedding loan access within its FirstMonie agent network, the bank is extending financial services to communities far from physical branches, enabling traders to restock quickly, farmers to purchase inputs on time, and households to meet urgent needs such as school fees and rent.
The implications extend beyond Nigeria. Across Africa, where more than 350 million adults lack formal financial services, FirstBank’s model is seen as a blueprint for banks seeking to balance technology, inclusion, and trust.
Still, analysts caution that the rapid expansion of digital credit must be matched with safeguards to prevent over-indebtedness and ensure consumer protection. Experiences from Kenya, where unregulated digital lenders triggered concerns about predatory practices, highlight the importance of responsible lending. FirstBank says it is addressing this by deploying AI not only for loan approvals but also for proactive risk management to minimise defaults.
Competition from fintechs has intensified Nigeria’s digital lending space, but many have been criticised for exploitative interest rates and aggressive recovery methods. FirstBank’s nationwide presence, brand trust, and balance sheet strength give it a competitive edge in delivering scale without compromising credibility.
Beyond banking, the milestone signals a cultural shift in how Nigerians engage with financial institutions. Once seen as conservative and corporate-focused, FirstBank has repositioned itself as a partner in everyday life—bringing credit access to both smartphone users and those with basic feature phones.
From stabilising households to fueling local businesses, the ripple effects of the bank’s digital lending strategy are already visible in grassroots economies across the country. As the 131-year-old institution celebrates this achievement, it faces the responsibility of sustaining momentum through continuous innovation and customer empowerment.
FirstBank’s ₦1 trillion digital loan milestone is more than a banking success—it is a redefinition of inclusive finance in Nigeria, with lessons for the rest of Africa.
