Banking
How FairMoney is Powering the Next Generation of Nigerian SMEs
By James Edeh
SMEs are widely regarded as the engine of economic growth. According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in 2025, Nigerian SMEs continued to anchor the economy, representing approximately 96% of all businesses. These enterprises contributed over 48% to Nigeria’s GDP and accounted for between 84% of total employment. However, while the vast majority of SMEs play a vital role in national development, only a small minority have access to formal credit or the financial literacy required to scale and meet eligibility requirements.
FairMoney Microfinance Bank (MFB), a leading technology-enabled bank in Nigeria, is supporting national financial inclusion objectives and bridging the gap by providing solutions that directly assist small and medium-sized enterprises (SMEs). It does this not only by providing access to financing but also by offering efficient payment processing options that help SMEs scale up financially.
Access to Capital
Securing a loan through FairMoney MFB offers a streamlined path for Nigerian SMEs to transform potential into performance. By prioritising digital speed and accessibility, the microfinance bank enables eligible business owners in Nigeria to secure up to ₦5,000,000 without physical collateral; however, access remains subject to credit assessment. This rapid disbursement creates a real opportunity for entrepreneurs to act on time-sensitive growth prospects, whether that means restocking inventory ahead of a peak season, fulfilling a sudden large-scale order, or upgrading essential equipment. To improve their eligibility for higher loan amounts, SMEs simply need to increase their engagement with the FairMoney ecosystem; banking and managing finances directly through the app after an initial application using their BVN and business details.
Beyond the Bank Statement
Alternative credit scoring is the engine that allows FairMoney MFB to leverage broader data sets to better inform credit decisions for a wider range of SME customers. FairMoney MFB doesn’t just look at a bank statement; it looks at potential. By utilising Alternative Credit Scoring powered by advanced data analytics and machine learning, FairMoney MFB assesses creditworthiness based on non-traditional data, such as app usage patterns, transaction velocity, and digital footprints – with customer consent and in accordance with Nigerian data protection requirements. This approach opens the door for businesses with limited formal financial histories to access real growth opportunities that were previously out of reach. For the Nigerian SME, this presents the opportunity to scale from small-scale survival to ambitious expansion, securing the funding necessary to innovate and compete based on the real-time strength of their operations.
Smarter Savings
True business growth requires a shift from simple borrowing to disciplined wealth management, and FairMoney MFB empowers SMEs with a suite of specialised products designed to ensure their capital works as hard as they do. Through FairTarget, entrepreneurs can define specific financial milestones, such as purchasing equipment or securing a larger office, and automate their progress toward reaching them. For operational liquidity, FairSave offers a high-interest savings account where funds remain accessible while earning daily interest, while FairLock provides long-term stability by allowing businesses to secure surplus funds at premium interest rates, protecting capital from impulsive spending. Together, these features transform FairMoney MFB from a lender into a comprehensive financial partner to SMEs that fosters both immediate scalability and long-term fiscal health.
POS Systems
FairMoney MFB’s Point of Sale (POS) systems provide Nigerian SMEs with a robust infrastructure to accept online, mobile, and in-person payments seamlessly. By transitioning from a cash-only model to a multi-channel payment system, businesses can significantly reduce operational risks such as theft and accounting errors while expanding their reach to a nationwide customer base. This digital shift unlocks real-life opportunities for growth. A local retailer can move beyond foot traffic to sell to customers across the country via the web, while service providers can offer “Pay with Transfer” or card options that cater to the growing demographic of cashless consumers.
Every digital transaction creates a verifiable financial trail within the FairMoney MFB app, which the bank uses to build a more accurate credit profile for the merchant. This means that simply by making it easier for customers to pay, SMEs could potentially improve their credit profile and gain access to more competitive pricing needed for long-term expansion.
Maintaining detailed financial records has transitioned from a best practice to a regulatory necessity for SMEs. The current landscape, influenced by the Nigeria Revenue Service (NRS), increasingly values verifiable digital records as a means of supporting eligibility assessments for small business tax holidays. Maintaining such records through record keeping can facilitate compliance with requirements for exemptions, such as the 0% Company Income Tax (CIT) rate for businesses with an annual turnover below ₦100 million. Without accurate, time-stamped digital trails, including structured e-invoices and clear transaction histories, SMEs risk not only losing these vital fiscal reliefs but also facing significantly sharper penalties for late filing or non-compliance.
Beyond tax, streamlined records bridge the information gap that often hinders access to credit; by presenting a “financial compass” of real-time cash flow and profitability, business owners can prove their creditworthiness to partners, turning their compliance into a strategic tool for securing the capital needed to scale in an increasingly formalised market. FairMoney MFB continues to serve as a dynamic partner in an SME’s journey toward long-term scalability and financial stability.
James Edeh is the Head of Compliance at FairMoney Microfinance Bank
By Aduragbemi Omiyale
Eligible innovators, financial institutions, Virtual Asset Service Providers (VASPs), financial technology (fintech) companies, and technology firms have been invited to apply for the second cohort of the Central Bank of Nigeria (CBN) Regulatory Sandbox Programme.
A statement signed by the acting Director of Corporate Communications and Investor Relations Department of the apex bank, Mrs Hakama Sidi-Ali, disclosed that entries opened on Wednesday, August 12, 2026, and will close on Monday, August 31, 2026.
Cohort 2 of the initiative introduces two dedicated testing tracks to support emerging technologies with the potential to strengthen Nigeria’s financial system while upholding high standards of consumer protection, financial stability, and market integrity.
According to the central bank, the two tracks are VASP and Data-Enabled Financial Services (Non-VASP).
VASP track is to support innovative virtual asset, stablecoin, payment, settlement, custody, wallet, and related financial infrastructure solutions that require supervised live testing, while the non-VASP track supports innovations that leverage secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency, and consumer outcomes.
The CBN Regulatory Sandbox provides a controlled environment in which eligible participants may test innovative financial products, services, business models, and enabling technologies under the supervision of the CBN.
The programme enables the CBN and innovators to engage constructively throughout the testing process, supporting regulatory learning while encouraging responsible innovation that benefits consumers and the wider financial system.
Eligible organisations whose proposed innovations fall within the programme’s scope are encouraged to apply.
Applications will be assessed based on the level of innovation, readiness for controlled live testing, potential consumer or market benefit, governance arrangements, risk management capability, and the suitability of the proposed testing plan.
Successful participants will undertake supervised testing within clearly defined parameters agreed with the CBN, including appropriate safeguards for consumer protection, operational resilience, cybersecurity, and regulatory reporting.
The central bank emphasised that participation in the scheme does not constitute a licence, authorisation, or approval to operate outside the approved testing parameters.
It noted that the Sandbox is intended to facilitate responsible experimentation, strengthen regulatory engagement, and support evidence-based policy development in line with the CBN’s statutory mandate.
By Aduragbemi Omiyale
The international spending limit on the GTBank Naira card has been increased by the financial institution to $40,000.
This information was revealed by the lender in an email to customers on Tuesday, August 11, 2026.
The banking subsidiary of GTCO Plc disclosed that the new offshore spending limit is for a quarter.
This development comes as the Nigerian foreign exchange (FX) market is witnessing stability against the United States Dollar.
The forex volatility experienced a few years ago has eased, allowing companies and others to plan within a reasonable exchange rate band.
“The Dollar limit on your GTBank Naira Card is now $40,000 quarterly,” the tier-1 commercial bank said in the message sighted by Business Post.
Improvement in forex liquidity in the domestic FX ecosystem has allowed Nigerians to use their local cards to complete financial transactions on foreign platforms, which was not possible a few years ago because of Dollar scarcity and arbitrage.
At the official market on Tuesday, the exchange rate closed at N1,364/$1. It was exchanged at N1,367/$1 at the GTBank FX desk and N1,395/$1 at the parallel market.
By Adedapo Adesanya
The Nigeria Data Protection Commission (NDPC) is investigating the University of Lagos, Lotus Bank, and Hackerbella Limited over alleged violations of data protection laws.
The probe followed public complaints alleging that students’ personal data was used to open bank accounts without a lawful basis.
The NDPC disclosed this in a statement signed by its Head of Legal, Enforcement and Regulations, Mr Babatunde Bamigboye, on behalf of the commission.
According to the commission, its chief executive, Mr Vincent Olatunji, directed the investigation team to conduct a comprehensive assessment of the circumstances surrounding the collection, use and disclosure of the affected students’ personal data.
The investigation will also determine the roles and responsibilities of the university, the bank, and the information technology solutions firm in the alleged data processing activities.
The NDPC said the probe would assess the compliance obligations of the three organisations under the Nigeria Data Protection Act, 2023, as well as the potential risks posed to the rights and freedoms of the affected students.
The commission said the investigation would cover several areas, including Data Protection Impact Assessments, the lawfulness and transparency of credit scoring or profiling activities, automated decision-making systems, privacy notices and data-sharing arrangements.
It will also examine the lawful bases for processing the students’ information, data minimisation, purpose limitation, retention policies and the adequacy of technical and organisational safeguards for protecting data subjects’ rights.
The commission stressed that institutions handling the personal information of students, staff and other members of their communities have a greater responsibility to ensure such data is properly protected.
“Institutions entrusted with the personal data of students, staff and other members of their communities have a heightened responsibility to ensure that such data is processed lawfully, fairly, transparently and securely,” the NDPC said.
The commission also warned educational institutions that have yet to comply with its existing data protection directives to take immediate steps to meet the required standards.
“Accordingly, the NDPC warns educational institutions that are yet to comply with its existing data protection compliance directives to do so immediately,” the statement added.
