By Emmanuel Okogba

A revolutionary credit scoring model developed by business analytics expert Olaitan Moses Ojo has successfully completed its live pilot program, delivering transformative results that are now triggering a wave of adoption among Nigeria’s leading microfinance banks (MFBs).

The framework is being hailed as a breakthrough solution to the long-standing challenge of lending to the nation’s vital informal sector.

The “Proxy-Variable Credit Scoring Model” (PVCSM), which uses non-traditional data like inventory turnover and supplier payment history, was piloted in early 2025. The results have been unequivocal. The bank reported a staggering 72% reduction in credit losses on loans assessed with the PVCSM compared to traditional methods. Furthermore, the model’s accuracy allowed the bank to expand its performing loan book by 18%, safely reaching entrepreneurs who would have previously been denied credit.

“The pilot program did not just validate the model; it fundamentally transformed our business,” said Hajiya Bello, CEO of a leading MFB. “We are now operating with a level of precision and confidence that was previously unimaginable. Mr. Ojo’s framework has given us the tools to significantly reduce risk while expanding financial inclusion. It is, without question, the new standard for our institution.”

The resounding success of the pilot has had an immediate ripple effect across the industry. Trust MFB and Topview Microfinance, who had been monitoring the pilot’s progress, have now announced they will be moving forward with the full, bank-wide implementation of the PVCSM in their own operations, starting in Q1 2026.

Dr. Segun Adeniran, Chairman of the Ekiti State Microfinance Institution Association, commented on the development. “Financial exclusion has been our industry’s most difficult problem. With these proven results, the PVCSM is no longer a promising theory but a practical, powerful, and validated solution that is actively working. By developing this framework and proving its efficacy, Mr. Ojo is providing thoughtful leadership that addresses a critical national issue. He is one of the very few innovators whose work is providing a new and better direction for the general public and the nation’s economy.”