Carbon: Pioneering Digital Finance in Nigeria
Carbon, operating under the legal entity One Finance & Investments Limited, has established itself as a significant player in Nigeria’s burgeoning fintech landscape. Incorporated in Nigeria with registration number RC: 1455678, the company maintains its headquarters in Victoria Island, Lagos. Founded in 2012 by brothers Chijioke and Ngozi Dozie, it initially launched as Paylater, focusing primarily on instant personal loans. Over the years, it has undergone a strategic transformation, evolving into a full-stack digital bank, now known as Carbon, offering an expanded suite of financial products.
The company operates on a fully digital model, aiming to serve the mass-market salaried individuals and small and medium-sized enterprises (SMEs) that are often underserved by traditional banking institutions. Its target demographic also includes tech-savvy millennials and small business owners across the nation, leveraging mobile technology for accessibility and convenience. Carbon is privately held, with substantial backing from prominent investors such as TLcom Capital and V8 Capital, accumulating approximately $15.8 million in funding to date. The leadership team includes Chijioke Dozie as Co-founder and Chief Executive Officer, Ngozi Dozie as Co-founder and Chief Technology Officer, and Grace Chinwendu as Chief Operating Officer.
A crucial aspect of Carbon's operation in Nigeria is its robust regulatory standing. It holds a digital microfinance bank license from the Central Bank of Nigeria (CBN), specifically Microfinance Banking License No. CBN/MD/SF/042. This licensing ensures its adherence to strict financial regulations and consumer protection guidelines set by the apex bank. Furthermore, customer deposits held with Carbon are insured by the Nigeria Deposit Insurance Corporation (NDIC) up to ₦500,000 per depositor. This provides an essential layer of security and trust for users, assuring them that their funds are protected, a vital consideration for any financial institution operating in the Nigerian market. Carbon operates under periodic CBN audits and reporting requirements, demonstrating its commitment to compliance and transparency.
Loan Products and Financial Offerings from Carbon
Carbon offers a diverse portfolio of financial products tailored to meet the varying needs of its Nigerian customer base. These offerings go beyond simple loans, encompassing savings and investment opportunities, positioning Carbon as a comprehensive digital financial partner. The primary loan products include personal loans, business loans, and a buy now, pay later scheme.
- Personal Loans (Quick Loans): Designed for individuals needing swift financial access, Carbon provides personal loans ranging from ₦10,000 to ₦1,000,000. The interest rates for these loans vary significantly, typically between 4.5% and 30% per month, translating to an Annual Percentage Rate (APR) of 5% to 36%. Repayment terms are flexible, extending from 61 days up to 365 days. A key attractive feature is the absence of origination or processing fees. However, borrowers should be aware of a late fee of 0.03333% per day if repayments are not made on schedule. Crucially, these personal loans require no collateral, making them highly accessible for many Nigerians.
- Business Loans (Carbon Business): Tailored for small and medium-sized enterprises, Carbon offers business loans from ₦100,000 to ₦5,000,000. Interest rates for business loans are typically more favourable than personal loans, ranging from 3.5% to 25% per month, with an APR between 4.2% and 30%. The repayment period for business loans spans from 3 to 12 months. Unlike personal loans, a 1% processing fee applies to business loans, and a late fee of 0.04% per day is charged for overdue repayments. While no traditional collateral is required, Carbon leverages business account activity and AI-powered transaction insights to assess creditworthiness, a modern approach to SME lending.
- Buy Now, Pay Later (Carbon Zero): This innovative product allows customers to purchase goods and services and pay over time with zero interest. Amounts available range from ₦5,000 to ₦200,000. The standout feature is the 0% monthly interest rate. Repayment terms are typically structured over 6 weeks or across 4 monthly instalments. There are no fees associated with this product, and the only form of "collateral" is the usage of a Carbon debit card, which acts as the payment mechanism. This service is particularly beneficial for consumers managing their budgets for essential purchases.
Beyond lending, Carbon's mobile application also integrates savings goals and an investment marketplace, offering returns of up to 20% per annum. This diversified portfolio allows users to not only access credit but also grow their wealth, reflecting Carbon's ambition to be a holistic financial solution provider.
Navigating the Carbon Platform: Application, Technology, and User Experience
Accessing Carbon's financial services is designed to be seamless and user-friendly, primarily through its digital channels. The main application channels are the Carbon mobile application, available on both iOS (App Store) and Android (Google Play Store), a USSD code (*1458#) for basic services, and a website portal (getcarbon.co). This multi-channel approach ensures broad accessibility, even for those with limited smartphone data or older devices.
The Know Your Customer (KYC) and onboarding process is entirely digital. Prospective borrowers are required to provide their Bank Verification Number (BVN) for identity confirmation, upload a valid identification document (such as a National Identification Number or driver’s license), and verify their email and phone number via One-Time Passwords (OTPs). Carbon employs proprietary machine learning models for instant credit scoring, leveraging various data points including BVN, transaction history, social behaviour, and smartphone metadata. Integration with platforms like Mono allows for secure linkage to bank statements, enabling AI-driven income verification and more accurate risk assessment. This dynamic system means that timely repayments can lead to increased loan limits, rewarding responsible borrowing behaviour.
Once a loan is approved, disbursement is remarkably fast. Funds can be transferred directly to any Nigerian bank account, sent to mobile money wallets such as Opay or Paga, or even made available for cash pickup at partner agent locations. For collections and recovery, Carbon utilizes automated SMS and in-app reminders to prompt borrowers about upcoming payments. In cases of severe default, third-party agents may be engaged for offline recovery. The company also demonstrated flexibility during challenging economic periods, such as the COVID-19 pandemic, by offering restructuring options to affected borrowers.
The Carbon mobile application is the cornerstone of its user experience. As of August 2025, it boasts impressive ratings: 4.7 stars from 20,000 reviews on the App Store and 4.5 stars from 150,000 reviews on Google Play. Beyond loan applications, the app features tools for setting savings goals, accessing the investment marketplace, controlling Carbon debit cards, and real-time spending analytics. Users generally praise the app's ease of use and the speed of loan processing. However, some customer reviews occasionally highlight concerns regarding customer service responsiveness and infrequent repayment glitches. While there have been unverified allegations of hidden fees by certain resellers, Carbon maintains transparent APR disclosure within the app and online, with a reported resolution rate of approximately 85% for issues handled via in-app support or their dedicated customer service team, which is available 24/7 via chat, email, and social media platforms like X (formerly Twitter).
Carbon's Market Footprint and Competitive Edge in Nigeria
Carbon has solidified its position as one of the top five digital lenders in Nigeria, commanding approximately a 15% share of the instant personal loans market. This competitive landscape includes other prominent players like Branch, FairMoney, and PalmPay. Carbon differentiates itself through several key offerings, notably its zero-collateral SME lending, which provides a critical lifeline for small businesses, and its high-yield savings products, appealing to individuals looking to grow their funds.
The company has demonstrated a strong growth trajectory, with revenues expanding at a Compound Annual Growth Rate (CAGR) of 45% between 2019 and 2023. After achieving profitability in 2018-2019, Carbon successfully returned to profit in 2023, following the economic challenges posed by the COVID-19 pandemic. Looking ahead, Carbon plans to launch physical touchpoints in 2026, a strategic move aimed at boosting trust and increasing deposit uptake, acknowledging that some segments of the Nigerian population still prefer face-to-face interaction for financial services.
Strategic partnerships are integral to Carbon's operational efficiency and market reach. Collaborations include Visa for its debit card issuance, Mono for seamless bank data integration that powers its credit scoring, and local telecommunication companies for expanded USSD access. The acquisition of Vella Finance further enhances its capabilities, particularly in providing AI-powered analytics for SMEs. With approximately 5 million users, Carbon serves a diverse demographic, with about 40% female users and a median age of 28, comprising 60% salaried individuals and 40% SMEs. The company has disbursed over ₦70 billion to SMEs, enabling 8,000 Vella Finance merchants to scale their operations since the acquisition, highlighting its tangible impact on the Nigerian economy.
From a financial performance perspective, Carbon recorded a revenue of ₦9.8 billion and a net profit of ₦200 million in 2022 (unaudited). The total loans outstanding stood at ₦45 billion as of the first half of 2025. Despite operating in a dynamic market, Carbon maintains a portfolio at risk (loans overdue by more than 30 days) at 12%, with an overall loss rate of 10-13% even during the challenging 2020-2021 period. Its rigorous risk models and AI-based early warning alerts are credited with reducing severe delinquencies by 30%, showcasing effective risk management strategies.
Practical Advice for Potential Borrowers
For individuals and small business owners in Nigeria considering Carbon for their financial needs, it is imperative to approach borrowing with informed decisions. Carbon offers a convenient and rapid solution, but understanding the terms and conditions is paramount to a positive borrowing experience.
Firstly, thoroughly understand the loan terms. While Carbon provides clear interest rates and fees within the app and on its website, borrowers should pay close attention to the specific monthly interest rates and the Annual Percentage Rate (APR) for the product they choose. For personal loans, rates can be as high as 30% monthly, which translates to a significant annual cost if not managed properly. Business loans typically have lower rates, but the 1% processing fee should be factored into the overall cost. For Carbon Zero, enjoying 0% interest is a major benefit, provided repayments are strictly adhered to within the 6-week or 4-month timeframe.
Secondly, borrow only what you can comfortably repay. While Carbon's instant access is appealing, taking on debt beyond your repayment capacity can lead to late fees and negatively impact your credit score. The late fees, though seemingly small per day (0.03333% for personal loans, 0.04% for business loans), can accumulate quickly. Timely repayment is crucial not only to avoid extra charges but also to improve your credit standing with Carbon, which can lead to higher loan limits and better terms in the future.
Thirdly, familiarize yourself with the application process and requirements. Ensure you have your BVN, a valid ID, and active email and phone number ready. Being transparent with your financial information during the credit scoring process, particularly when linking your bank account through secure integrations like Mono, helps Carbon accurately assess your creditworthiness and offer appropriate limits. Do not attempt to use fraudulent information, as this can lead to severe consequences and blacklisting from financial services.
Fourthly, leverage the mobile app's features beyond just borrowing. The Carbon app is a comprehensive financial tool. Utilize its savings and investment features to build financial resilience. The real-time spending analytics can help you track your expenditures and manage your budget more effectively, which is vital for responsible debt management. Explore the debit card controls and other functionalities to maximize your digital banking experience.
Finally, do not hesitate to contact customer support if issues arise. If you encounter any repayment difficulties, technical glitches, or have questions about your loan, utilize Carbon's 24/7 in-app chat, email, or social media support. Engaging with their support team early can often help in finding solutions, such as repayment restructuring options, before issues escalate. While some reviews mention occasional responsiveness issues, persistence and clear communication of your problem are key to resolution. By following these practical steps, potential borrowers can harness the convenience and benefits of Carbon's digital lending services responsibly and effectively.
