Credlock Africa’s story begins with a simple observation: in Nigeria, almost everyone has a smartphone, yet many still cannot access loans. Traditional collateral is hard to provide, credit histories are often nonexistent, and many lenders see informal-sector workers as too risky. But what if the very device people rely on every day could open the door to credit?
When Credlock launched in early 2024, its founders set out to build a lending system shaped around this question. Working quietly from Ilorin, they created a tool that evaluates a borrower’s smartphone and assigns it a collateral value. Once a loan is granted, a small security feature stays on the device. If the borrower stops paying, the phone doesn’t disappear into the hands of debt collectors; instead, its major functions gradually lock until the borrower regularises repayments. For many people, that phone is their business line, their banking tool and their window to the world, and losing access to it even temporarily is enough motivation to stay on track.
Within a short time, the company’s idea caught on. As merchants and phone sellers began adopting the system, Credlock’s loan volume surged. It moved from thousands to hundreds of thousands of active borrowers, eventually crossing more than ₦1.5 billion in deployed credit across most Nigerian states. On its own platform, the running counter climbed even higher, passing ₦2.5 billion in loans facilitated, a remarkable feat for a company not yet two years old. The number of borrowers seeking Credlock loans grew sharply, with demand in some periods rising by well over 100 percent as more Nigerians discovered the option to finance smartphones and other needs without traditional collateral.
Much of this momentum reflects the leadership style of the company’s CEO, Dayo Fabayo, who has long worked in technological and financial systems. He often describes Credlock’s mission as building a layer of trust in markets where formal structures have failed people for decades. His approach blends technology with human insight: small loans for first-timers, longer repayment cycles than the typical short-term digital lenders, and a gradually expanding credit limit for those who repay responsibly. Under his guidance, the company has become both a consumer lender and a kind of digital infrastructure partner for merchants and financial institutions.
The numbers behind Credlock hint at how deeply the model resonates. Their repayment rate hovers around 95 percent, striking for a business serving customers who usually have no credit history. The device itself becomes a steady reminder of responsibility, avoiding the forceful and sometimes dangerous repossession practices that exist in other parts of the informal lending world.
Of course, the approach has its critics. Some worry about the ethics of locking a person’s primary communication tool. Credlock argues that its system is consent-based, transparent, and far less harmful than many alternatives. Whether debating risk, convenience or fairness, one truth is clear: the company has created a new kind of collateral for a new kind of borrower.
For some Nigerians, a Credlock loan has become more than just quick cash, it is a first step toward formal finance, a way to buy a needed phone, start a roadside business, or handle an emergency without falling into predatory debt.
Credlock has turned the ordinary smartphone into something quietly impactful: a pathway to trust, dignity and financial possibility.
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