Microfinance banks (MFBs) recorded a sharp rise in credit activity in the first quarter of 2026, with financing-statement filings climbing 38.4 per cent year-on-year to 22,977. The latest figures highlight the continued importance of MFBs in providing formal credit to Nigeria’s micro and small businesses, which often struggle to access financing from traditional banks.
Data from the Central Bank of Nigeria (CBN), obtained through the National Collateral Registry, showed that MFBs accounted for 84.6 per cent of the 27,170 financing-statement filings recorded across all creditor categories during the quarter. Although their market share dropped from 94.1 per cent in Q1 2025, the decline was largely driven by a dramatic increase in filings by deposit money banks rather than a fall in MFB activity.
The growth in MFB filings was steady throughout the quarter. Filings increased from 6,110 in January to 8,045 in February and reached 8,822 in March. March alone represented a 45.4 per cent increase from the 6,066 filings recorded in the same month of 2025. Overall, financing-statement filings across all creditor categories rose 53.9 per cent year-on-year, from 17,650 to 27,170.
Analysts said the figures point to deeper formal credit access for underserved businesses, although the number of filings does not necessarily indicate the total value of loans issued. Research Analyst at CSL Stockbrokers, Mobifoluwa Adesina, noted that MFBs remain dominant because of their close relationship with micro and small businesses and their ability to provide smaller loans with more flexible repayment structures. Associate, Investment Research and Consulting at Afrinvest, Olamide Ologunagbe, also said MFBs are designed to make lending a central part of their business model.
Meanwhile, commercial banks are beginning to make a stronger push into the secured-credit market. Their financing-statement filings jumped by 955.1 per cent, from just 272 in Q1 2025 to 2,870 in Q1 2026, with March alone recording 1,914 filings compared with 108 a year earlier. The development points to a widening secured-credit market in Nigeria, with MFBs continuing to serve smaller borrowers while commercial banks increasingly turn to collateral registration to support lending.
source: punch
