Credit Direct expands into embedded finance and SME lending in Nigeria

Expansion into embedded finance and SME lending

Credit Direct, a subsidiary of FCMB Group, is expanding beyond traditional consumer lending into embedded finance. According to TechCabal, the company aims to integrate credit into platforms where customers already make payments or conduct transactions, such as merchant and business platforms.

The expansion includes a new focus on SME financing. Credit Direct is launching CreditDirect Business, a product offering loans up to ₦50 million ($37,130) to eligible businesses. The loans are tailored to address cash flow needs, including general-purpose loans, invoice-backed financing, and purchase order contract financing. Loan amounts depend on factors like cash flow, existing obligations, and the nature of the business.

Victoria Arinze, Product Marketing Lead at Credit Direct, stated that the company is using customer feedback to refine its SME products, which are still in the early stages of deployment.

Addressing Nigeria’s SME funding gap

Africa’s SMEs face a $330 billion funding gap, a challenge Credit Direct aims to address by leveraging its lending expertise. The company has historically served customers in markets often overlooked by traditional lenders, including individuals borrowing for rent, medical bills, and school fees—the three leading reasons for loans on its platform.

In 2025, the average loan amount on Credit Direct’s platform increased by 23.5% to ₦449,178 ($326.75), reflecting growing demand for larger loans among its customers.

West Africa expansion plans

Credit Direct is exploring expansion into other West African markets, with discussions currently underway. While no specific markets have been confirmed, the move could position the company as a regional player in embedded finance and SME lending.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Credit Direct’s expansion into embedded finance and SME lending is a direct response to two critical gaps in Nigeria’s financial ecosystem: the lack of accessible credit for consumers and the $330 billion funding shortfall for SMEs. By integrating loans into platforms businesses and individuals already use, the company is reducing friction for borrowers and creating a scalable model for lenders.

For founders and operators, this signals a shift in how financial services are delivered—moving away from standalone lending platforms toward deeper integration with e-commerce, payments, and business tools. The rise of embedded finance could lower the cost of customer acquisition for lenders while increasing access for borrowers.

Credit Direct’s SME push also intensifies competition in Nigeria’s lending market. Founders seeking financing may see more options and better terms, but they should also prepare for stricter due diligence as lenders refine their risk assessment models. The company’s potential expansion into West Africa could further diversify funding sources for businesses in the region, particularly if it partners with local platforms to embed credit offerings.

Key takeaways

• Embedded finance is becoming a critical tool for lenders to reach underserved markets, particularly SMEs.
• Credit Direct’s move signals growing competition in Nigeria’s SME lending space, which could drive innovation and better terms for borrowers.
• Founders in West Africa should monitor Credit Direct’s expansion as it could introduce new financing options for businesses in the region.

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