The alternative lending market in Nigeria is poised for substantial growth, projected to increase by 45.2% annually, reaching $212.9 million by 2023, as revealed in the Research and Markets (RM) Nigeria Alternative Lending Business Report 2023, obtained by InfoStride News.
This report highlights a resilient medium to long-term growth trajectory for alternative lending in Nigeria, anticipating a steady adoption with a Compound Annual Growth Rate (CAGR) of 27.4% from 2023 to 2027.
Breaking down the specifics, the alternative lending market in Nigeria is expected to surge from $146.6 million in 2022 to an impressive $560.4 million by 2027. The comprehensive report by InfoStride News provides an in-depth exploration of the alternative lending market, dissecting key economic indicators to offer a holistic perspective on this dynamic landscape.
Intricately delving into the expansive horizons of the alternative lending market, the report covers diverse aspects such as overall market size, forecasts, granular analyses of end-user segments, various finance models, and intricacies of payment instruments. By navigating the nuanced relationships between payment instruments and lending models, the report aims to provide a detailed breakdown of transaction dynamics within the alternative lending space.
This comprehensive analysis further unravels the multifaceted nature of loans, ranging from personalized Business-to-Consumer (B2C) offerings like payroll advances to strategic Business-to-Business (B2B) solutions such as lines of credit. The report also delves into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices within the alternative lending market.
Incorporating over 75 Key Performance Indicators (KPIs) in both value and volume terms, the report facilitates an in-depth understanding of end-market dynamics. The KPIs contribute to a comprehensive knowledge of alternative lending market dynamics, market size, and forecasts.
On a global scale, the report indicates that the alternative lending market is projected to grow by 17.0% annually, reaching $662.3 billion in 2023, emphasizing a robust medium to long-term growth narrative globally, with a steady adoption forecasted at a CAGR of 10.1% from 2023 to 2027. The global alternative lending market is anticipated to increase from $566.0 million in 2022 to a substantial $971.6 million by 2027.
Highlighting the broader landscape, the report recognizes that alternative lending providers based in Africa are securing funding rounds to introduce new products and expedite growth. In Africa, the challenges faced by small and medium-sized enterprises (SMEs) in accessing credit through traditional channels have fueled a heightened demand for alternative lending providers. To meet this escalating demand, firms operating in the alternative lending space are actively raising venture capital and private equity funding in Africa.
In conclusion, the alternative lending market in Nigeria is not only set for impressive growth but is also indicative of broader trends in the global alternative lending landscape, emphasizing the pivotal role alternative lending plays in providing financial access and solutions, particularly for SMEs in emerging markets. As revealed by InfoStride News, these insights into the alternative lending market present valuable information for investors, businesses, and policymakers navigating the evolving financial landscape in Nigeria and beyond.
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