Onome Amuge
Nigeria’s digital lending industry received a further vote of confidence this week as Global Credit Ratings (GCR) upgraded the national scale issuer ratings of MyCredit Investments Limited (operating as FairMoney Microfinance Bank). The upgrade, which raises the institution’s long-term rating from BBB(NG) to BBB+(NG) and its short-term rating from A3(NG) to A2(NG), highlights the shifting balance of power in a microlending market increasingly dominated by technology-driven players.
The decision comes as traditional microfinance banks face high operational costs, rising impairments and pressure from customers seeking faster, more accessible credit. FairMoney, by contrast, has steadily consolidated its position as one of the most technologically advanced lenders in the sector, leveraging artificial intelligence, digital onboarding and high-volume transaction systems to scale rapidly.
GCR said the upgrade reflects improving conditions in Nigeria’s microfinance industry alongside FairMoney’s consistent earnings, strong cash flow generation and flexible funding structure, the latter supported by its Paris-based parent company, Predictus SAS.
FairMoney reported N112.3 billion in operating revenue for the 2024 fiscal year, an output that places it among the highest-earning microfinance institutions in the country and highlights the rising profitability of digital-native lenders.
Speaking on the development, Henry Obiekea, director of FairMoney Nigeria, said the business was able to strengthen its risk framework while preserving margins. “Over the last three years, we have consistently managed portfolio credit risk downwards without hurting margins,” he said. He added that demand for FairMoney’s loan products remains high, helped by the bank’s ability to process more than 10,000 loan requests daily, a level unmatched by most conventional microfinance operators.
The company has also been expanding beyond its initial consumer-lending niche, moving into small and medium enterprise (SME) loans, an increasingly competitive segment as banks and fintechs battle for market share in a country where access to credit remains low.
Despite Nigeria’s inflationary pressures and challenges associated with loan recovery, GCR noted that FairMoney has maintained strong cash generation and commendable leverage, underpinned by a growing base of low-cost customer deposits. The bank’s technology-driven underwriting model, anchored in the use of internal and external data sources, is seen to have helped it improve customer risk assessment and reduce credit losses.
GCR’s Stable Outlook reflects expectations that the institution will further strengthen its asset quality over the next 12–18 months, aided by rising macroeconomic stability and planned diversification into secured lending. The rating agency anticipates continued growth in FairMoney’s market share, broader revenue diversification and a sustained net interest margin below 80 percent.
Obiekea described the upgrade as a strong endorsement of the FairMoney platform, adding that it validates the company’s business model and its commitment to disciplined risk management.
