How 2025 Taught Us to Turn Debt into Wealth

Omolabake Fasogbon

The year 2025 has taught different financial stories to Nigerians and investors alike. For some, it delivered business growth, wealth creation and a sense of fulfilment.

For many others, it brought unpleasant realities, amplified by economic turbulence that strained household budgets, pushing individuals and businesses deeper into bad debt.

Yet, even amid these pressures, the year also produced stories of resilience. Beyond the narratives of financial strain, stories emerged of bold investors whose high-stakes debt propelled mega prosperity, rewriting bad narratives about borrowing as being a financial entrapment.

One such example is Ejike, a Lagos-based tailor whose story underscores how deliberate use of finance can alter outcomes.  Operating initially within Nigeria’s informal economy, while navigating loan complexities and capital constraints, Ejike’s turning point came when structured funding, combined with financial training, enabled him to invest in productive equipment. That shift moved his business from survival to expansion, creating jobs and new revenue streams.

Stories of people like Aliko Dangote and Henry Fajemirokun are great inspirations that show what is possible. Still, the story of the Founder and CEO of Payaza, Seyi Ebenezer, remains a fresh example that stood out in 2025. His journey shows a clear path and a strong, resilient way to handle loans and build a business.

In September 2025, Payaza announced a repayment of N20.3 billion in commercial paper obligations, funds raised earlier in the year through Series 1 and Series 2 of its N50 billion Commercial Paper Programme.

The repayment, he said, was completed in full and ahead of schedule, with the company not resorting to new equity or refinancing. Instead, he funded it through internally generated cash flow, a signal of disciplined financial management.

For Ebenezer, the repayment went beyond settling obligations to investors. It reinforced the company’s credibility in Nigeria’s debt market and earned its investment-grade credit rating upgrades from multiple agencies, reflecting improved financial resilience and governance standards.

The Payaza story mirrors a broader reality highlighted by development and financial institutions. In several reports, including its private sector updates, the World Bank has noted that access to well-structured credit, supported by strong governance and cash-flow discipline, remains a key driver of business growth in emerging economies like Nigeria. Debt, the institution argued, becomes harmful only when it is misaligned with income generation and long-term planning.

This idea was also shared by Nigerian financial firm, Opticum Finance, which classified borrowing in two forms. Destructive borrowing, the firm explained, typically finances lifestyles beyond one’s means, often through high-interest consumer loans tied to depreciating assets and without a clear repayment plan.

Strategic borrowing, on the other hand, is channeled into income-generating assets, business expansion with measurable returns, or education and skills that increase earning capacity.

The lesson from 2025 is therefore that debt should not be completely avoided, but that it must be approached with clarity and discipline. Experts aver that credit itself is neither good nor bad. What matters is how it is structured, managed, and repaid. For individuals and small business owners, understanding this difference can determine whether debt becomes a trap or a tool.

As Nigerians look ahead to 2026, financial experts suggest a rethinking about borrowing to be viewed strategically rather than emotionally, explored only where there is a clear repayment plan and realistic returns.

They pointed out further that trust in itself is a kind of wealth. Being reliable with lenders and partners is believed to help build a reputation that will open much bigger doors for borrowers in the future.