Andray Finance, a Nigerian fintech startup, has launched a mobile lending application designed to offer an ethical alternative to the country’s informal and often predatory lending market. The app, unveiled on April 23, 2026, provides small, short-term loans directly to consumers, with the company positioning itself as a regulated challenger to unlicensed loan sharks.
The launch comes amid growing concerns over exploitative lending practices in Nigeria’s vast informal economy, where individuals and small businesses with limited access to traditional banking often turn to unregulated lenders. Andray Finance’s chief executive, Oluwaseun Adeosun, stated that the company’s mission is to ‘displace loan sharks’ by providing transparent, accessible credit. ‘We are not just offering loans; we are offering a lifeline built on dignity and transparency,’ Adeosun said.
Andray’s model relies on a digital application process that uses alternative data for credit assessment, aiming to serve customers who may be excluded from conventional banking. The company has obtained a license from the Central Bank of Nigeria, a move it says differentiates it from the unlicensed operators that dominate the informal sector. This regulatory standing is central to its strategy of building trust with a customer base that has historically been vulnerable to harsh collection practices and exorbitant, opaque interest rates.
The challenge of non-performing loans is a significant one across Africa’s digital lending landscape. In a related development, another fintech firm, Bfree, recently raised $3.1 million in a funding round to expand its operations tackling bad loans. Bfree’s approach focuses on using digital tools and ethical engagement strategies for loan recovery, a contrast to the aggressive tactics sometimes employed by lenders. While Andray Finance is entering the market as a lender, the success of both models hinges on sustainable credit management within a demographic often considered high-risk.
Andray Finance is betting that a significant portion of Nigeria’s adult population, which remains financially excluded or underserved, will gravitate toward a formal, transparent provider. The company’s entry highlights a broader trend in African fintech where startups are increasingly targeting specific pain points in financial inclusion, moving beyond pure payments into credit, savings, and insurance. The Nigerian market, with its large youth population and high mobile phone penetration, presents a substantial opportunity for digital financial services, though it is also highly competitive and scrutinized by regulators.
The Central Bank of Nigeria has been actively regulating the digital lending space in recent years, introducing frameworks to curb malpractice and protect consumers. Andray Finance’s licensed status places it within this regulated perimeter, which could provide a competitive advantage as authorities continue to clamp down on illegal loan apps. The company’s long-term vision, according to its executives, is to leverage its initial lending product to build a broader financial ecosystem for its customers.