Skip to main content
  1. Market Insights
  2. Financial
  3. Capital Raising
  4. Digital Capital Raising

Marketplace Lending (Consumer) - Nigeria

Nigeria
  • The total transaction value in the MarketMarketplace Lending (Consumer) market market in Nigeria is projected to reach US$95.27m in 2024.
  • When compared globally, it is evident that the highest transaction value is expected to be reached the United States (US$28bn in 2024).
  • Key Market Indicators offer a glimpse into the social and economic landscape of Nigeria, providing valuable insights into market-specific trends.
  • These indicators, combined with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
  • Nigeria's Marketplace Lending sector is experiencing a surge in consumer capital raising through innovative digital platforms, revolutionizing access to funding.

Definition:

Marketplace Lending platforms offer private users the option to place requests for loans in an online marketplace to find private investors who would invest at an appropriate interest rate. These services apply a credit score and list the financial requests by intended purpose before fixing a lending rate. One or more investors can then serve the credit request. Although banks act in cooperation with the platform providers, the lending is done, in principle, without direct exposure, risk audits or the formal requirements normally associated with credit lending. This is attractive for many users because the processes are expedited, there is less demand when it comes of the borrower’s creditworthiness and the conditions are often more flexible than with traditional bank loans. Users are defined in this case as active borrowers on an online platform; applicants or investors who are only partially recorded as users are not included. The amount of outstanding, short-term installments or consumer loans recognized during the applicable year is used here as a benchmark.

Additional Information:

Key players in the market are Lending Club, Zopa, Auxmoney and Prosper.

In-Scope

  • Online marketplace for personal loan applications and private investors
  • Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider

Out-Of-Scope

  • Online comparison websites for bank loans
  • Traditional bank loans
  • Loans for business purposes (see Crowdlending)
Digital Capital Raising: market data & analysis - Cover

Market Insight report

Digital Capital Raising: market data & analysis

Study Details

    Capital Raised

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Average Deal Size

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Global Comparison

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Number of Deals

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Marketplace Lending (Consumer) market in Nigeria is experiencing significant growth and development.

    Customer preferences:
    In recent years, Nigerian consumers have shown a growing preference for online and digital services, including marketplace lending. This shift can be attributed to the increasing penetration of smartphones and internet connectivity in the country. Consumers are increasingly seeking convenient and accessible financial solutions, and marketplace lending platforms offer a streamlined and efficient alternative to traditional banks.

    Trends in the market:
    One of the key trends in the Nigerian marketplace lending market is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with individual lenders, eliminating the need for intermediaries such as banks. This model has gained popularity due to its ability to offer lower interest rates and faster loan processing times. Additionally, marketplace lending platforms are leveraging technology and data analytics to assess the creditworthiness of borrowers, making lending decisions more efficient and accurate.

    Local special circumstances:
    Nigeria has a large population of unbanked and underbanked individuals, who have limited access to formal financial services. This presents a significant opportunity for marketplace lending platforms to fill the gap and provide financial inclusion to these underserved segments of the population. Furthermore, the Nigerian government has implemented policies and initiatives to promote financial inclusion and support the growth of the fintech industry, creating a favorable environment for marketplace lending platforms to thrive.

    Underlying macroeconomic factors:
    Nigeria is experiencing rapid urbanization and a growing middle class, which is driving demand for consumer credit. Marketplace lending platforms are well-positioned to cater to this demand by offering quick and accessible loans to individuals for various purposes such as education, healthcare, and business expansion. Additionally, the Nigerian economy is diversifying, with a growing number of small and medium-sized enterprises (SMEs) emerging. These SMEs often face challenges in accessing credit from traditional banks, making marketplace lending an attractive alternative for them. In conclusion, the Marketplace Lending (Consumer) market in Nigeria is witnessing significant growth and development. Customer preferences for digital and convenient financial services, the rise of peer-to-peer lending platforms, the opportunity for financial inclusion, and underlying macroeconomic factors such as urbanization and the growth of SMEs are driving this growth. As technology continues to advance and the Nigerian market evolves, marketplace lending is expected to play an increasingly important role in the country's financial landscape.

    Methodology

    Data coverage:

    The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

    Modeling approach / Market size:

    Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

    Forecasts:

    In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

    Additional notes:

    The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

    Financial

    Access more Market Insights on Financial topics with our featured report

    Digital Capital Raising: market data & analysis - BackgroundDigital Capital Raising: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Explore more high-quality data on related topic

    Crowdfunding - statistics & facts

    Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.
    More data on the topic

    Contact

    Get in touch with us. We are happy to help.