FairMoney Grows Revenue by 62% to ₦121.9 Billion in 2024

April 11, 2025

2 min read

FairMoney, a leading digital lending fintech in Nigeria, increased its gross revenue by 62% to ₦121.9 billion in 2024. The company also boosted its profit after tax to ₦7.9 billion, a major jump from ₦780 million in 2023.

The company achieved this growth by depending more on customer deposits to fund its loans. In 2024, 56% of FairMoney’s loan book came from customer deposits. These deposits surged by 1,467% in just three years—from ₦2.9 billion in 2021 to ₦72.9 billion in 2024.

This move helped FairMoney reduce its reliance on expensive borrowing. In 2020, borrowed funds made up over 80% of its funding, but by 2024, that number dropped to less than 5%.

FairMoney said its growing customer base, loyalty, and competitive interest rates helped increase deposits. The company also noted that with high inflation in the country, it focused on offering attractive savings rates to customers.

By using customer deposits, FairMoney reduced funding costs and improved profit margins. This strategy helped the company make more money from its loans while keeping expenses low.

FairMoney made ₦116 billion from interest on loans in 2024, a 57% increase from the previous year. While interest income drove most of the revenue, the fintech also made ₦5 billion in non-interest income—₦3.8 billion came from fees and commissions, and ₦1.7 billion from other sources.

Despite the growth, FairMoney still spends a lot to keep the business running. It recorded ₦41 billion in operating expenses, meaning it spent ₦78 to make every ₦100. The company also paid ₦10 billion in interest, slightly more than the ₦8.3 billion it paid in 2023.

FairMoney’s loan impairments also went up. After two years of stable performance, impairments increased by 30% to ₦59.4 billion in 2024. This pushed the impairment ratio to 45.7% of the company’s total ₦129.9 billion loan book. However, FairMoney said this figure appears high because it counts every loan as impaired until customers repay them.

The fintech added that its risk assessment models are improving. It has also strengthened ethical loan recovery efforts and improved how it checks customer profiles before giving loans.

FairMoney’s cost of risk improved to -49.7%, although it still shows a high level of risk in its loan book. Meanwhile, its net interest margin remained strong at 81.7%. This high margin is common in lending businesses but comes from offering high-interest loans—sometimes up to 10% per month. While this brings in revenue quickly, it also increases the chance of default.

The company’s total assets grew by 56% to ₦101.7 billion in 2024. Most of this growth came from a ₦30.4 billion increase in the size of its loan book. However, its cash reserves dropped by ₦2 billion to ₦8.3 billion. FairMoney also recorded a sharp increase in prepayments, rising from ₦1.3 billion to ₦8.36 billion.

Although FairMoney’s fast growth and high earnings are impressive, the company still faces risks. To ensure long-term success, it must improve how it manages risk, lowers costs, and maintains the quality of its loans.