This Nigerian microfinance bank's slow-lending strategy is delivering fast results

In a Nigerian fintech landscape where speed is often the name of the game, Nombank, the microfinance banking subsidiary of Nomba, has taken a deliberate detour. Rather than promising approvals in minutes, the lender has chosen a slower path, taking between 24 and 48 hours to make a credit decision. This measured approach has yielded surprising results: a non-performing loan ratio of below 1%, a feat few in the industry can claim. At the helm of Nombank is Seun Osunkeye, the managing director who understands the value of patience.

Nombank's lending model is built on the bedrock of payment data, which powers much of its underwriting. But that's not all, account officers also verify merchants before approving loans, sometimes through physical visits. This added layer of verification might seem old-fashioned in a digital age, but it's a crucial part of Nombank's strategy. By taking the time to understand the nuances of each merchant's cash flow, the bank can make more informed lending decisions. And it's this attention to detail that has allowed Nombank to keep its non-performing loan ratio so low.

Nomba's partnership with Globus Bank has been a significant milestone in the lender's journey. The 18-month lending partnership has disbursed ₦21.3 billion ($15.45 million) to Nigerian businesses, with a remarkable 1% non-performing loan ratio. This achievement is all the more impressive considering the industry average is a staggering 8%. The partnership has been a resounding success, with both parties reaping the benefits of a well-executed lending strategy. It's evidence of the power of collaboration and the importance of building strong relationships in the fintech space.

The Central Bank of Nigeria has been keeping a close eye on the industry's non-performing loan ratio, which rose to 8.03% in January 2026. This is above the prudential threshold of 5%, a worrying trend that highlights the need for lenders to adopt more robust risk management strategies. Nombank's approach, which prioritizes credit quality over speed, is a refreshing change in a market where the emphasis often lies on quick approvals and fast disbursements.

As the fintech landscape in Nigeria continues to evolve, it's clear that lenders like Nombank are pioneering a new approach to lending. By prioritizing credit quality and taking the time to understand the nuances of each merchant's cash flow, Nombank is setting a new standard for the industry. It's a strategy that may not be the most glamorous, but it's one that's delivering fast results for the lender and its customers. As the industry continues to grow, it will be fascinating to see how other lenders adapt to this new approach and whether Nombank's slow-lending strategy becomes the new norm.

In my opinion, Nombank's success is evidence of the power of patience in the fintech space. By taking the time to understand the intricacies of each merchant's cash flow, the lender has been able to keep its non-performing loan ratio remarkably low. As the industry continues to evolve, it will be interesting to see whether other lenders adopt a similar approach and whether Nombank's slow-lending strategy becomes the new standard.