Zedvance Finance Disburses N120bn to SMEs — Now Plans Threefold Lending Push

Zedvance Finance Limited announced plans to triple its SME lending portfolio in 2026, building on a record N120 billion disbursed to Nigerian small businesses throughout 2025. The Lagos-based fintech confirmed the expansion targets during an investor briefing on Tuesday, positioning itself as a major catalyst for economic access in Africa's largest economy.

Record Disbursement Sets New Benchmark

The company revealed it processed more than 45,000 loan applications last year, with approval rates climbing 18 percent compared to 2024. Zedvance Finance chief executive Tosin Adeyemi said the 2025 figures reflect growing demand for flexible credit among Nigeria's underserved business owners. Lagos, Abuja, and Port Harcourt accounted for the largest share of approved loans, though rural lending grew by 22 percent as the company expanded its agent network.

The average loan size stood at N2.7 million, with repayment terms averaging 14 months. Zedyance Finance reported a 94 percent repayment rate across its portfolio, a metric Adeyemi called critical to sustaining future lending capacity. The company's asset under management crossed N340 billion in December, cementing its position among Nigeria's top five non-bank lenders.

What the Tripling Means for Nigerian Entrepreneurs

Zedvance Finance projects disbursements will reach N360 billion by the end of 2026 if market conditions remain stable. The target would represent the largest single-year lending commitment by any Nigerian fintech to the SME sector. Adeyemi told reporters the expansion responds directly to persistent gaps in commercial credit access that hamper business growth across the country.

Nigeria's small businesses employ roughly 84 percent of the country's workforce yet receive less than five percent of total banking credit. Zedvance Finance has positioned itself at the intersection of that供需失衡, offering collateral-free loans that bypass traditional banking requirements many entrepreneurs cannot meet. The company's mobile-first approach allows applications to be submitted and approved within 48 hours, a process that conventional banks typically complete in three to four weeks.

Reaching Underserved Communities

The tripling plan includes deliberate efforts to increase lending in states where formal banking penetration remains below 40 percent. Zedvance Finance identified Katsina, Enugu, and Bayelsa as priority expansion states for 2026. The company will deploy 1,200 additional field agents across these regions, targeting market traders, transport operators, and small-scale manufacturers who have historically struggled to access formal credit.

Community leaders in Lagos's Alaba Market, one of West Africa's largest electronics hubs, welcomed the news. Many traders there have relied on informal rotating savings circles known as ajo to finance inventory purchases. Those circles typically yield annual returns below inflation, making formal credit an attractive alternative when terms are accessible. Zedvance Finance already counts more than 8,000 Alaba Market vendors among its active borrowers.

Competition Intensifies in Nigerian SME Lending

The announcement places Zedvance Finance in direct competition with established players including Renmoney, Carbon (formerly Paylater), and Kiakia Finance. Each has targeted Nigeria's approximately 40 million micro, small, and medium enterprises as the primary growth engine for their respective platforms. Industry analysts estimate the addressable SME credit market in Nigeria exceeds N15 trillion annually, though traditional lenders have historically served less than 20 percent of that demand.

Central Bank of Nigeria data shows non-performing loans across the banking sector averaged 6.1 percent in the third quarter of 2025. Zedvance Finance's 94 percent repayment rate significantly outperforms that benchmark, a fact Adeyemi attributed to proprietary credit-scoring technology that analyses mobile usage patterns, transaction histories, and character references. The company plans to license portions of that technology to partner microfinance banks in the second half of 2026.

Regulatory Framework and Risk Management

Zedvance Finance operates under a Microfinance Bank licence issued by the Central Bank of Nigeria. The company must maintain capital adequacy ratios of at least 10 percent and comply with quarterly reporting requirements. Its tripling plan requires additional capital raising, with Zedvance confirming it has engaged three international investment banks to explore a potential Series C funding round in the first quarter of 2026.

The fintech faces risks from Nigeria's persistent inflation, which the National Bureau of Statistics recorded at 24.7 percent in November 2025. Rising prices erode borrower repayment capacity and squeeze household disposable income, dynamics that could pressure loan performance if economic conditions deteriorate further. Zedvance Finance has set aside a provision coverage ratio of 8.5 percent as a buffer against expected credit losses.

How Citizens and Communities Stand to Benefit

For ordinary Nigerians, Zedvance Finance's expansion carries tangible implications for daily life. Small business owners who secure credit can hire additional staff, purchase equipment, or increase inventory. Research from the International Finance Corporation indicates that improved SME financing correlates with measurable reductions in poverty rates within a three-year horizon.

Market associations across Nigerian cities have taken notice. The Ogun State Chamber of Commerce wrote to Zedvance Finance requesting a dedicated lending window for artisans and craftsmen in Abeokuta. Similar requests have arrived from trader groups in Kano's Kurmi Market and Onitsha's Upper Market in Anambra State. Zedvance Finance confirmed it is evaluating both proposals but declined to commit to specific timelines pending capital raise completion.

What Happens Next

Zedvance Finance will publish its full 2025 annual report by March 31, 2026, offering detailed breakdowns of lending by sector, geography, and borrower profile. The Series C funding process is expected to conclude by June 2026, after which the company will announce specific deployment timelines for its N360 billion lending target. Adeyemi indicated the capital raise could value the company at more than N800 billion, a significant jump from its estimated N280 billion valuation following the 2024 Series B round.

Prospective borrowers should monitor the company's website and mobile application for updated eligibility criteria, which Zedvance Finance plans to revise ahead of the 2026 expansion push. The company has also flagged that interest rates may adjust based on macroeconomic conditions, advising entrepreneurs to lock in current pricing where possible. The CBN's next monetary policy committee meeting, scheduled for late January 2026, will provide an early signal on whether borrowing costs are likely to rise or fall in the months ahead.