M-KOPA has disbursed ₦231 billion in credit to customers in Nigeria, marking a major milestone in its expansion of smartphone financing and digital credit access across the country.
The company said the credit has reached more than one million Nigerian customers, primarily through its pay-as-you-go financing model that allows users to acquire smartphones and repay in small daily instalments.
M-KOPA focuses on providing credit to individuals who often lack access to traditional banking services, particularly workers in the informal economy.
Expanding Access To Digital And Financial Infrastructure
Smartphones have become essential tools for economic participation, enabling access to banking, digital payments, communication, and online services. However, upfront device costs remain a barrier for many Nigerians.
M-KOPA’s financing model allows customers to obtain smartphones with an initial deposit and repay the remaining balance over time. This approach reduces the need for formal credit history or collateral, making devices accessible to underserved populations.
The ₦231 billion figure represents the total value of credit extended, not revenue. It reflects the scale of financing M-KOPA has provided to support device ownership.
Reaching First-Time Credit Users
The company’s lending model is designed to serve individuals who may be accessing formal credit for the first time. By enabling smartphone ownership through structured repayments, M-KOPA also helps customers build digital financial records.
Access to smartphones can open pathways to additional financial services, including digital payments, savings, and credit products.
This positions smartphone financing not only as a hardware distribution model but also as a gateway to broader financial inclusion.
Strengthening Its Position In Nigeria’s Fintech Market
Nigeria represents one of M-KOPA’s key growth markets due to its large population and high demand for digital financial services. The company operates through a network of agents and retail partners that facilitate device distribution and customer onboarding.
As smartphone usage continues to expand, financing models like M-KOPA’s are playing an increasing role in supporting device access.
This approach aligns with broader trends in Africa’s fintech sector, where companies are building alternative credit systems based on usage data rather than traditional credit scoring.
What This Means For Nigeria’s Digital Economy
M-KOPA’s credit expansion highlights the growing role of fintech companies in supporting access to digital infrastructure. Smartphones serve as entry points to financial services, online commerce, and digital work opportunities.
By extending financing at scale, M-KOPA is helping expand the number of people who can participate in Nigeria’s digital economy.
The milestone also reflects increasing demand for credit solutions tailored to underserved populations, particularly as digital services become more integrated into daily economic activity.
