Zitra Investments Vows to Close Financial Inclusion Gap, Expands Access to Credit
L-R: Co-founder, Femi Okuyelu; CEO, Tunde Obadero; and Co-founder, Chief Olaotan Olamuyiwa, at the media briefing ahead of Zitra Investments's upcoming 6th anniversary in Lagos
Marking its sixth anniversary, the management of Zitra Investments has expressed determination to close the financial inclusion gap and extend Small and Medium Enterprises (SMEs) access to credit in Nigeria.
The Chief Executive Officer, Zitra Investments, Mr. Babatunde Obadero, at a press conference held recently in Lagos, said SMEs remain the heartbeat of commerce in the country, and the company is poised to assist with access to credit.
He stated that the company in six years of remaining in operation has been an interesting journey for the management.
He said: “I dare say 300,000 loans and N30 billion loans disbursed in the last six years. 200,000 customers on our digital platforms. The journey has just started and there is still a lot of ground to cover.
“In six years, we have our banking licence. We have a Securities & Exchange Commission (SEC) issued asset management licence, and a payment company called Zitra Pay. All of these entities have given us a platform to provide services our customers require.
“We have built an ecosystem that delivers financial services just the way our customers need them. We are proud to say our growth has not begun. We have a combined balance sheet size of over N50 billion which is a beginning of our journey to greater things ahead.”
Going into the future, he said the goal of the company is to lead in the retail digital financial services in Nigeria, stressing that the company aims to expand its footprint geographically and provide better access to its digital channels.
Co-founder, Zitra Investments, Mr. Femi Okuyelu, recalled that the company started with five staff and today, it has over 120 staff in different locations across the country.
“In terms of growth, we have seen the business evolve and we have been able to solve some problems in the nation’s economy.
“Today in Nigeria, the financial inclusion is now about 79 per cent, 21 million adults financially excluded. It can look small but that combined population is equivalent to Finland, Estonia and maybe Denmark. And we have actually contributed our quota into that financial inclusion story,” he said.
On why credit penetration is still low, Okuyelu said: “Only 10 per cent of the adult population have access to credit. People who borrow from family and friends, cooperatives, churches. Why they are not able to access formal credit? Number one, they don’t have collateral. Number two, they play in the informal sector which is not organised. And number three, no credit history and credit records.”
He said Zitra’s response has been to create a social business model that onboards informal customers, helps them organise their businesses, monitors cash flow and lends against it.
“What we have created will make it easier for them to access credit. We monitor their cash flow and lend against their cash flow because in this environment, lending against collateral is difficult,” he said.
On his part, Director, Chief Olaotan Olamuyiwa, who recalled that the idea for Zitra was conceived during COVID-19 when the founders decided to start their own firm after working in different organisations, said the journey has been built on relationships and one major investor who believed in the vision.
Speaking on how small businesses struggle with funding, he noted that many SMEs have their own money trapped with clients.
“You see people that want N5 million to stock up, but they have sold products to other businesses and those businesses are owing them in excess of N20 million. They cannot afford N5 million to finance a transaction because their cash is tied,” he said.
He said products like invoice discounting address that gap, adding that: “lf you have N20 million in invoices due in 60 to 90 days, you can come to us and say, fund this N1 million project and I will pay when my debtor pays.”