Nigeria Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

Nigeria Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

According to PayNXT360, the alternative lending in the country is expected to grow by 34.8% on an annual basis to reach US$230.9 million in 2024.

Medium to long term growth story of alternative lending in Nigeria remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 23.8% during 2024-2028. The alternative lending market in the country will increase from US$171.3 million in 2023 to reach US$542.1 million by 2028.

Nigeria's alternative lending sector is rapidly growing, driven by fintech innovations and new financing models. Key developments include significant product launches, strategic partnerships, mergers and acquisitions, and supportive regulatory changes. Despite inflation and high borrowing costs, the sector is poised for continued expansion, supported by favorable policies and increased market interest.

Growth in the Alternative Lending Sector

Nigeria's alternative lending sector has experienced significant growth, driven by an increasing demand for accessible financing solutions, particularly among small and medium-sized enterprises (SMEs) and individuals facing challenges in obtaining traditional bank loans. The sector is expected to continue expanding in the coming months as fintech innovations and alternative financing models gain traction, although macroeconomic pressures such as inflation and high borrowing costs may pose challenges to broader adoption and sustainability.

Key Developments in the Alternative Lending Sector

Product Launches and Innovations

• The Alternative Bank recently launched in Lagos, Abuja, and Kano. It introduces digital products for e-commerce, renewable energy financing, and ethical retail investments, including AltCoin for gold investment.

• Peer-to-Peer Lending Platforms: Several fintech companies have introduced new peer-to-peer lending platforms utilizing machine-learning algorithms to simplify the loan application process and improve access to credit for individuals and small businesses. This makes it easier for borrowers to secure funds without traditional collateral requirements.

Strategic Partnerships

Sterling Bank Collaborates with Payhippo for Merchant Lending

• Sterling Bank, a major Nigerian commercial bank, partnered with Payhippo, a fintech startup specializing in merchant cash advances. Sterling Bank will provide funding to Payhippo, allowing the fintech firm to expand its lending operations and offer more flexible financing solutions to small businesses, addressing the challenge of inadequate credit access for merchants in Nigeria.

Flutterwave and Aella Credit Launch Buy Now, Pay Later Service

• Flutterwave, an African payments tech company, partnered with Aella Credit to launch a Buy Now, Pay Later service in Nigeria. This allows consumers to pay for purchases in installments from Flutterwave's merchant network. The collaboration aims to drive financial inclusion and support e-commerce growth in Nigeria.

Mergers and Acquisitions

• Carbon Acquires Vella Finance: Carbon, a prominent digital lending platform, acquired Vella Finance in a significant move. This acquisition will enhance Carbon's product offerings and expand its reach in the alternative lending market.

• Access Bank's Strategic Acquisitions: Access Bank has been active in M&A, including its acquisition of a majority stake in Uganda's Finance Trust Bank and its involvement in acquiring KCB Group. These moves are part of Access Bank's strategy to strengthen its position in the African banking landscape and enhance its lending capabilities.

Regulatory Changes

Central Bank of Nigeria (CBN) Introduces Regulatory Sandbox

• Central Bank of Nigeria launched a regulatory sandbox for fintech companies, including alternative lenders, to test innovative products and services. This allows close monitoring and guidance from the CBN, ensuring consumer protection while encouraging financial sector innovation.

CBN Issues Guidelines for Non-Interest Digital Banks

• The CBN has issued guidelines for non-interest digital banks in Nigeria to expand financial inclusion. These guidelines establish a framework for Shariah-compliant financial services and are expected to attract more market players and improve access to ethical financing options.

Government Introduces Tax Incentives for Alternative Lenders

• The Nigerian government has introduced tax incentives for fintech companies in the alternative lending sector, including reduced corporate tax rates and tax credits for investments in financial technology infrastructure. This aims to encourage market growth and expand credit access for individuals and small businesses.

This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Nigeria. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth data-centric analysis of Alternative Lending industry in Nigeria through 125 tables and 150 charts. Below is a summary of key market segments:

Nigeria Economic Indicators
• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

Nigeria Alternative Lending Market Size and Forecast
• Transaction Value
• Average Transaction Value
• Transaction Volume

Nigeria Alternative Lending Market Size and Forecast by End User
• End User - Business
• End User - Consumer

Nigeria Alternative Lending Market Size and Forecast by Finance Models
• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

Nigeria Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Nigeria Alternative Lending Market Size and Forecast by Payment Instrument to Model
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Nigeria Alternative Lending Market Size and Forecast by Loan Types
• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

Nigeria Alternative Lending Analysis by Consumer Attitude and Behaviour
• By Age
• By Income
• Gender

Reasons to buy

• Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 – 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.

• Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.

• Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.

• Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in Nigeria, develop proactive and profitable company plans.