A new report by commerce technology company Omni has revealed that only 18 per cent of Nigerian retailers have been able to secure formal loans, highlighting the persistent financing challenges facing small businesses across the country.

The report, which focuses on Nigeria’s fast-moving consumer goods (FMCG) sector, shows that despite strong demand for credit among retailers, access to structured financing remains limited.

According to the findings, many small and medium-scale retailers continue to rely on personal savings, informal lending groups, and supplier credit to fund their operations, as barriers to formal borrowing remain high.

The report underscores the difficulties faced by retailers in obtaining bank loans and other institutional financing due to factors such as high interest rates, lack of collateral, limited credit history, and stringent lending requirements.

Industry experts say inadequate access to credit has continued to hamper the growth of Nigeria’s retail sector, limiting the ability of businesses to expand inventories, improve cash flow, and increase profitability.

The findings come at a time when inflationary pressures, rising operating costs, and weakening consumer purchasing power are placing additional strain on retailers and distributors nationwide.

Analysts believe improving access to affordable financing and expanding digital credit solutions could play a critical role in supporting the growth of Nigeria’s FMCG ecosystem and boosting economic activity.

The report also highlights the growing need for financial institutions, fintech companies, and policymakers to collaborate in developing more inclusive lending models tailored to the realities of small retailers.

As Nigeria’s retail industry continues to evolve, experts say closing the financing gap will be essential to ensuring sustainable growth and strengthening the country’s broader consumer goods market.

• Only 18% of Nigerian retailers have accessed formal loans.
• Most retailers still depend on informal sources of funding.
• High interest rates and collateral requirements remain major barriers.
• Limited access to credit is constraining business growth.
• Digital financing solutions could help bridge the funding gap.
• Greater collaboration between banks, fintech firms, and policymakers is needed to improve financial inclusion.

The report paints a picture of an industry with enormous potential but constrained by a financing deficit that continues to limit the growth prospects of thousands of Nigerian retailers.