Peer-to-Peer Lending and Financial Inclusion in Lagos, Nigeria

Peer-to-peer lending platforms have emerged as a disruptive financial technology solution that potentially bridges the credit gap faced by individuals and small businesses excluded from the formal banking system. This study explores the role of peer-to-peer lending in advancing financial inclusion in Lagos, Nigeria, drawing on the experiences of both borrowers and lenders active on registered fintech platforms between 2021 and 2024. A descriptive research design is adopted, and data are gathered from 200 respondents through online and in-person questionnaire administration. The study examines borrower profiles, loan utilisation patterns, interest rate experiences, and default incidence, while also investigating the platform governance mechanisms that protect lenders from credit loss. The research is framed within financial inclusion theory and the regulatory sandbox framework introduced by the Central Bank of Nigeria for fintech innovation oversight. Lagos is selected as the study context due to its concentration of fintech activity and its role as Nigeria's economic capital within the South West zone. Existing literature on digital lending in Nigeria points to rapid growth in loan disbursements alongside rising default rates and regulatory uncertainty, highlighting the need for evidence-based oversight. This study contributes empirical data on platform-based lending outcomes in Lagos and offers policy recommendations for the Central Bank of Nigeria's fintech regulatory guidelines. Keywords: peer-to-peer lending, financial inclusion, fintech, Lagos, digital credit