Nomba, Globus Bank test new SME lending model with N21.3bn portfolio

A credit partnership between Nomba, a Nigerian fintech infrastructure provider, and Globus Bank is drawing attention to a different approach to business lending in Nigeria, after both firms reported a non-performing loan (NPL) ratio below 1 percent on N21.3 billion disbursed to merchants across key sectors of the economy.

The portfolio, deployed over 18 months, spans wholesale and retail (39 percent), professional services (28 percent), food and hospitality (11 percent), oil and gas (11 percent), and fast-moving consumer goods (8 percent).

The result comes at a time when banking sector data and industry reports continue to show elevated credit risk in Nigeria. The Central Bank of Nigeria (CBN) has repeatedly flagged NPL ratios above its 5 percent prudential benchmark in parts of the banking system, particularly in segments exposed to small and medium-sized enterprises (SMEs).

In a statement, the companies disclosed that their model diverges from conventional underwriting methods that rely on audited financials, collateral documentation, and historical credit records. Instead, credit decisions are based on real-time transaction data generated through Nomba’s payment infrastructure.

“By tracking merchant cash flows, sales volumes, and settlement patterns, the platform builds a live financial profile of each borrower. Loan sizing and repayment structures are then tied to observed revenue rather than projections or static records,” it said.

Data limitations, driven by a lack of formal financial reporting among MSMEs, are a primary constraint in Nigerian SME financing. While many businesses maintain consistent activity, their reliance on informal systems hinders access to credit, with World Bank estimates highlighting over N13 trillion in unmet credit demand.

It added that a second component of the model is a digitised collateral framework that links credit access to continued use of Nomba’s platform. Instead of requiring fixed assets such as land or machinery, the structure embeds repayment into the borrower’s operating system.

“Merchants retain access to payments, settlements, and business tools as long as loan obligations are met. Default risks are mitigated by integrating repayment into daily business activity rather than relying on post-default recovery processes,” the statement reads.

This addresses a longstanding issue in Nigerian lending. According to the International Finance Corporation (IFC), a significant share of SMEs lack acceptable collateral, limiting access to formal credit and increasing reliance on unsecured lending with higher default risk.

Performance as a lending benchmark
Executives from both firms say the focus should shift from total credit disbursed to repayment outcomes.

Nomba said it plans to expand the model through additional institutional credit partnerships, including commercial banks and development finance institutions, with a focus on sectors such as logistics, healthcare, and manufacturing.

The company outlined an ambition to build a N500 billion credit book, anchored on the performance of the existing portfolio.

“Globus Bank’s mission is to support the growth of Nigerian businesses, and this partnership is a direct expression of that,” said Elias Igbinakenzua, managing director and chief executive officer of Globus Bank.

“What distinguishes this facility is not its size. It is the quality of the underlying credit decisions. Capital is deployed against verified transaction data, not against documents. The NPL performance of this portfolio is the clearest evidence of what disciplined, infrastructure-led lending can produce,” he said.

Yinka Adewale, chief executive officer of Nomba, said the focus of the Nigerian credit market should shift from disbursement volumes to repayment performance.

“The Nigerian credit conversation has been captured by one question: how much have you deployed? That is the wrong question. The right question is how much has come back, and why,” Adewale said.

“Our answer is a non-performing loan ratio below 1 percent on ₦21.3 billion. That number did not happen by accident. It happened because we built underwriting infrastructure that actually works, data that is real, meaningful collateral, and borrowers who have genuine skin in the game,” he added.