In this engaging episode of the Frontier Fintech podcast, host Samora Kariuki sits down with Ngozi Dozie, co-founder of Carbon, to unpack the untapped potential of Nigeria’s lending market. Despite Nigeria’s status as one of Africa’s largest economies, only 2–5% of its population accessed loans annually a decade ago. Ngozi reveals how Carbon seized this opportunity, starting with paper-based salary loans and evolving into a digital-first platform, revolutionizing consumer and SME finance in a market long dominated by risk-averse banks.

Ngozi shares the gritty details of Carbon’s journey, from its origins in debt collection to leveraging Nigeria’s rising smartphone penetration and payment infrastructure for its Paylater product. He discusses the power of proprietary credit scoring, which maintained a 10–13% loss rate through economic crises, and the hard lessons learned during COVID-19, when reactive decisions strained customer trust. With candor, Ngozi reflects on the complexities of transitioning to full-service banking and the strategic pivot to SME banking, driven by the insight that 50% of their retail borrowers were small business owners.

Looking ahead, Ngozi envisions Carbon as a “superpower” for customers, using AI and automation to solve not just financial but operational challenges for SMEs. From AI-powered cash flow tools to personalized advisory services, Carbon aims to redefine banking by addressing the “why” behind financial needs. This episode is a treasure trove of insights for fintech innovators, entrepreneurs, and anyone curious about building trust and value in one of Africa’s most dynamic markets.