FirstBank Hits ₦1 Trillion Milestone in Digital Loan Disbursement

 

FirstBank Hits ₦1 Trillion Milestone in Digital Loan Disbursement

First Bank of Nigeria Limited has achieved a major milestone in Nigeria’s financial services industry with the disbursement of over ₦1 trillion in digital loans, just six years after it launched its instant digital lending service in August 2019.

The bank, which is 131 years old, disclosed that more than 1.5 million unique borrowers have benefitted from its collateral-free loans delivered through multiple channels, including its *894# USSD service, FirstMobile app, LitApp, and the FirstMonie agent network.

FirstBank said the initiative was designed to eliminate the traditional barriers to credit, particularly for small businesses and low-income earners often excluded by conventional banking requirements such as collateral and guarantors. Loan approval now takes less than five minutes.

Through products such as FirstAdvance (for salary earners), FirstCredit (for individuals without formal employment), and Agent Credit (for micro-businesses using the FirstMonie network), the bank has positioned itself as a driver of inclusive lending.

The move aligns with Nigeria’s financial inclusion agenda. According to the 2023 EFInA Access to Financial Services survey, 64 percent of the population is now formally included in the financial system, with digital financial services playing a significant role in bridging the gap for the underbanked and unbanked.

Industry experts note that while mobile banking and payment platforms have expanded rapidly in recent years, access to credit has remained a bottleneck. FirstBank is changing that narrative by adopting alternative credit scoring models powered by Artificial Intelligence (AI) and Machine Learning, enabling it to assess risks and serve high-risk segments previously overlooked.

The implications for Micro, Small, and Medium Enterprises (MSMEs)—which account for nearly 50 percent of Nigeria’s GDP and employ over 80 percent of the labour force—are significant. Through Agent Credit, traders, artisans, and rural entrepreneurs can now access affordable working capital, fostering growth and resilience at the grassroots level.

Analysts also see the bank’s success as a competitive response to fintech lenders, many of which have faced criticism for high interest rates and aggressive repayment tactics. With its financial strength, trusted brand, and nationwide reach, FirstBank combines the speed and flexibility of fintech with the stability of a traditional institution.

Beyond Nigeria, the bank’s model offers a potential blueprint for other African markets, where about 350 million adults remain excluded from formal financial services.

However, experts caution that as digital credit grows, regulators must strike a balance between innovation and customer protection, citing Kenya’s experience with over-indebtedness and data privacy concerns. FirstBank said it is addressing this by embedding proactive risk management into its lending system to ensure responsible borrowing and repayment.

More than just a product, the bank says digital lending has become a lifeline for households and small businesses—helping traders restock quickly, farmers buy inputs, and families meet urgent expenses.

“With over ₦1 trillion in loans processed digitally, we are proud to be part of our customers’ everyday lives, providing not just speed and convenience, but also trust and security,”  the bank stated.