Effect of OPay Microfinance Bank on Small and Medium Enterprises in Nigeria

This study examined the effect of OPay Microfinance Bank on small and medium enterprises (SMEs) in Nigeria, with particular emphasis on access to loan facilities and the quality and efficiency of financial services. Specifically, the study sought to examine the effect of OPay loan products (OKash and Easimoni) on SMEs’ access to loan facilities in Nigeria and determine the effect of OPay’s internet banking transaction success rate on SMEs’ access to financial services. Two research questions and corresponding hypotheses were formulated to guide the study. Relevant conceptual, theoretical, and empirical literature was reviewed. An ex post facto research design was adopted. Data were obtained from OPay’s annual reports, Central Bank of Nigeria publications, and publications of the Nigeria Inter-Bank Settlement System (NIBSS). Descriptive statistics and ordinary least squares (OLS) regression were used to analyse the data. The findings revealed that OPay’s loan products had a statistically significant effect on SMEs’ access to loan facilities in Nigeria ( , ). Similarly, OPay’s internet banking transaction success rate had a statistically significant effect on SMEs’ access to financial services ( , ). The findings suggest that OPay’s loan products and transaction success rate are important factors associated with SME access to loans and financial services, although structural limitations may constrain the translation of digital financial access into broader financial empowerment. The study recommended that OPay strategically expand its loan product offerings to reach more underserved small businesses. It also recommended that regulatory authorities create an enabling environment for fintech-driven SME financing through proportionate regulation that balances innovation with consumer protection.