How to Build Credit in Nigeria Without Borrowing Recklessly

Building a good credit score doesn’t have to mean drowning in debt. In Nigeria, many people wrongly assume that the only way to grow their credit profile is by taking out multiple loans or borrowing large sums. But there are smarter, safer ways to build credit without putting your finances at risk.

The first step is using small, manageable forms of credit. This could be a short-term loan or a buy now, pay later (BNPL) option that you’re confident you can repay on time. The key is consistency. Paying your bills—whether they’re from credit products, utility services, or even subscriptions—on time every month plays a major role in how credit bureaus assess your reliability.

Avoid borrowing more than you need. The goal is to show you can handle credit responsibly, not to test your limits. A small loan that’s paid off in full is far more valuable to your credit score than a big one you struggle to repay. If you’re using a credit card or a BNPL service, try to keep your credit usage low—ideally below 30% of your available limit.

It’s also important to monitor your credit regularly. This helps you catch any errors, keep track of your progress, and understand what lenders see when they check your report. In Nigeria, your BVN links all your financial activity together, so every payment counts.

Most importantly, avoid late payments and defaults. They can stay on your credit report for years and drag your score down even after you’ve paid off the debt. Being disciplined with even the smallest loans will help build a trustworthy financial reputation over time.

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