M-KOPA says it has deployed ₦231 billion in credit to over one million Nigerians

Since entering Nigeria in 2019, asset financing company M-KOPA has deployed more than ₦231 billion ($170.34 million) in credit to over one million customers, positioning smartphone financing as one of the fastest-growing entry points into formal credit for low-income Nigerians. According to the company’s latest impact report, women account for 33% of borrowers, and 52% of them are accessing credit for the first time through its platform. The lending spans financed smartphones and cash loans, underscoring the company’s evolution from its original solar home systems business. Across Nigeria, embedded finance models are expanding access to consumer credit outside traditional banks. By tying loans directly to financed assets and repayment behaviour, companies like M-KOPA are testing whether technology-driven lending can succeed where conventional retail credit has struggled with defaults and high borrowing costs. M-KOPA initially entered Nigeria, financing solar home systems, a model it pioneered in East Africa. But customer behaviour quickly revealed a larger opportunity. “Once you finance solar home solutions, you start to ask yourself what you missed,” Babajide Duroshola, M-KOPA Nigeria’s general manager, told TechCabal. “That is when you figure out that everybody needs to be in the digital economy, and access to a smartphone solves this.” Smartphones have become the primary gateway to the internet for millions of Nigerians, yet affordability remains the biggest barrier to adoption. Nearly six in ten Nigerians remain offline largely due to device costs, according to GSMA, the global telecom industry body. Device financing companies are increasingly targeting this gap, offering installment payment plans designed for informal workers who lack traditional credit histories. M-KOPA’s model removes several barriers associated with formal lending. Customers do not require collateral, guarantors, or proof of income. Instead, they make an initial deposit alongside providing identification, after which repayments are structured as daily micropayments. “What you start with is what you are ending with,” Duroshola said. “Even if the loan was six months and you pay in six and a half months, we do not add extra charges. It is not an interest-based model.” Risk management relies heavily on embedded technology within financed devices. Phones can be remotely restricted if repayments stop, limiting functionality until payments resume while still allowing emergency calls. Customers facing financial hardship may also return devices and receive refunds on their deposits, a mechanism the company says helps maintain single-digit default rates in Nigeria. The approach shifts collections away from traditional debt recovery toward asset control and behavioural repayment tracking. #tc-budget-tool-v5 { font-family: 'Open Sans', -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; width: 100%; max-width: 480px; margin: 32px auto; background: #FFFFFF; border: 1px solid #E3E8EF; border-radius: 12px; overflow: hidden; box-shadow: 0 4px 16px rgba(0,0,0,0.06); box-sizing: border-box; line-height: 1.5; } #tc-budget-tool-v5 * { box-sizing: border-box; } #tc-budget-tool-v5 .tc-header { background: #151515; padding: 16px 20px; text-align: center; } #tc-budget-tool-v5 .tc-body { padding: 24px 20px; } #tc-budget-tool-v5 label { display: block; font-size: 0.85rem; font-weight: 700; color: #151515; margin-bottom: 8px; text-transform: uppercase; letter-spacing: 0.5px; } #tc-budget-tool-v5 .tc-input-group { margin-bottom: 24px; } #tc-budget-tool-v5 .tc-input-relative { position: relative; } #tc-budget-tool-v5 .tc-currency-symbol { position: absolute; left: 16px; top: 50%; transform: translateY(-50%); color: #666; font-weight: 600; font-size: 1.1rem; pointer-events: none; /* Ensures clicking the symbol focuses the input */ } #tc-budget-tool-v5 input[type="text"] { width: 100%; padding: 14px 14px 14px 35px; border: 2px solid #E3E8EF; border-radius: 8px; font-size: 1.2rem; font-weight: 600; color: #151515; outline: none; transition: border-color 0.2s ease; background: #FFFFFF; margin: 0; } #tc-budget-tool-v5 input[type="text"]:focus { border-color: #EA2D2E; } #tc-budget-tool-v5 .tc-slider-section { background: #FAFAFA; padding: 16px; border-radius: 8px; border: 1px solid #F0F0F0; margin-bottom: 24px; } #tc-budget-tool-v5 input[type="range"] { width: 100%; height: 6px; background: #DDD; border-radius: 5px; outline: none; -webkit-appearance: none; cursor: pointer; margin: 12px 0; } #tc-budget-tool-v5 input[type="range"]::-webkit-slider-thumb { -webkit-appearance: none; appearance: none; width: 20px; height: 20px; border-radius: 50%; background: #EA2D2E; cursor: pointer; } #tc-budget-tool-v5 .tc-result-card { background: #F6F6F6; border-radius: 12px; padding: 24px 20px; text-align: center; transition: all 0.3s ease; border: 1px solid transparent; } #tc-budget-tool-v5 .tc-footer { background: #FAFAFA; padding: 12px 20px; border-top: 1px solid #E3E8EF; display: flex; justify-content: space-between; align-items: center; } 📱 Can I Afford This Phone? Daily repayment calculator 1. My Daily Income ₦ 2. Daily Phone Repayment Low ₦800 High Drag to match the loan offer Impact on Your Wallet 0% of income Enter your income above to see if you can afford this. You will have … left for food & transport. Source: M-KOPA / TechCabal TECHCABAL document.addEventListener("DOMContentLoaded", function() { try { const incomeInput = document.getElementById('tc-daily-income-v5'); const repaymentSlider = document.getElementById('tc-daily-repayment-v5'); const repaymentDisplay = document.getElementById('tc-repayment-display-v5'); const percentageDisplay = document.getElementById('tc-percentage-v5'); const insightDisplay = document.getElementById('tc-insight-v5'); const remainderDisplay = document.getElementById('tc-remainder-v5'); const resultCard = document.getElementById('tc-result-card-v5'); if (!incomeInput || !repaymentSlider) return; function formatMoney(num) { return '₦' + Number(num).toLocaleString('en-US'); } function calculate() { let rawValue = incomeInput.value.replace(/,/g, '').replace(/\D/g, ''); let income = rawValue ? parseInt(rawValue, 10) : 0; let repayment = parseInt(repaymentSlider.value, 10); repaymentDisplay.textContent = formatMoney(repayment); if (income

SOURCE: https://techcabal.com/2026/02/26/m-kopa-lends-%e2%82%a6231-billion-to-one-million-nigerians/