How Nomba and Globus Bank Kept Loan Defaults Below 1%

Nigeria’s digital lending scene has long been marked by harsh recovery tactics and rising defaults. In response, regulators introduced hefty penalties for abusive debt collection. Yet Nomba and Globus Bank took a different path. Over 18 months they built a ₦21.3 billion loan portfolio with under 1% in non-performing loans—far below the national average. They rely on real transaction data instead of paper promises. Only a small share of the 600,000 merchants on Nomba’s platform even qualify for loans. When they do borrow, amounts are limited to about 1% of annual revenue. Collateral takes the form of “digitised” assets and mandatory cash cover. Early warning flags trigger restructuring, not threats. This cautious approach may offer a blueprint for safer lending in Nigeria’s tough economy.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.