Gloria Onosode, Director of Enterprise Sales at FairMoney Business, has called on Nigerians to rethink their perception of credit, describing responsible borrowing as a strategic financial tool that can drive long-term wealth creation and business growth.
In a thought leadership article titled “How Responsible Borrowing Can Help You Reach Your Financial Goals,” Onosode said the traditional view of debt as a financial trap is gradually giving way to a more strategic understanding of credit, particularly as Nigeria’s economy continues to evolve.
According to her, borrowing should not be seen merely as a means of surviving financial difficulties but as part of a broader financial strategy that supports sustainable growth when used responsibly and within one’s repayment capacity.
ALSO: Mathesis CEO Highlights Three Pillars Driving Africa’s Next Financial Infrastructure Revolution
She explained that the difference between productive and unproductive borrowing lies in how the funds are utilised.
Onosode noted that borrowing for lifestyle consumption or depreciating assets, such as luxury items or non-income-generating purchases, often creates financial pressure without delivering long-term value.
Conversely, she said borrowing to finance productive investments—including business expansion, inventory, commercial vehicles, equipment or professional development—can improve productivity, increase revenue and strengthen long-term financial stability.
She observed that responsible access to credit allows entrepreneurs and small businesses to seize growth opportunities that might otherwise be delayed by insufficient working capital.
According to Onosode, many small and medium-sized enterprises (SMEs) lose valuable business opportunities because they lack the immediate cash flow needed to fulfil customer orders or expand operations.
She added that properly structured financing can help bridge temporary funding gaps, enabling businesses to convert opportunities into sustainable revenue.
The FairMoney executive also highlighted the impact of inflation on business investment decisions, noting that delaying the purchase of productive assets such as machinery, solar power systems and commercial vehicles often becomes more expensive over time.
She said asset-backed financing enables businesses to acquire critical equipment earlier, allowing the assets to generate income that supports repayment.
Onosode further identified education and skills development as productive areas where credit can create long-term value, saying investments in professional training and technical education have the potential to significantly increase earning capacity.
She stressed that responsible borrowing must be guided by sound financial discipline.
According to her, borrowers should only obtain credit for productive purposes, carefully assess their repayment capacity before taking any loan, and work with financial institutions that provide transparent pricing and clearly disclose borrowing costs.
“Borrowing decisions should be supported by realistic cash-flow planning and repayment capacity assessments,” she said.
Onosode emphasised that credit is neither inherently good nor bad but a financial tool whose impact depends on how it is used.
She urged individuals and businesses to carefully evaluate their financing needs, affordability and long-term financial objectives before taking on any borrowing commitment.
She also reminded borrowers that every loan creates a legal obligation to repay and advised Nigerians to avoid taking on debt beyond their financial capacity.
According to her, when approached with discipline, transparency and a clear purpose, responsible borrowing can become a catalyst for business expansion, financial resilience and sustainable economic growth.
