By Sesi Noah When Mariam Ogundairo needed just ₦30,000 (about \$20), she downloaded a loan app and quickly got the cash. What seemed like a...
By Sesi Noah
When Mariam Ogundairo needed just ₦30,000 (about \$20), she downloaded a loan app and quickly got the cash. What seemed like a lifeline came with a heavy price — a 21.6% interest rate due in just two weeks.
Like many Nigerians struggling under soaring inflation, she couldn’t pay back on time. What followed was relentless harassment.
“They started calling my phone contacts when I couldn’t pay back, telling them I owed money,” Mariam said. “I lost my peace of mind. It made me so sad and scared.”
Her story is far from unique. Across Nigeria, thousands are turning to loan apps for quick cash, only to be trapped by outrageous interest rates and abusive recovery tactics. Campaigners say these apps, which promise fast loans and “low interest,” often resort to blackmail — sending threatening messages, sharing private photos, or smearing borrowers’ reputations when payments are late.
One student, who asked not to be named, said a loan app branded him a “ritualist killer” in messages to his classmates after he defaulted on a ₦70,000 loan during his final year. He had borrowed to cover research costs for his thesis. “It wasn’t that I didn’t want to pay,” he explained. “I simply couldn’t.”
Nigeria’s economic reforms under President Bola Tinubu — including subsidy removal and currency devaluation — have worsened the hardship, pushing inflation to record highs and forcing more people to rely on personal loans. The Central Bank reports that personal loans soared to ₦3.82 trillion by the end of 2024.
While the Federal Competition and Consumer Protection Commission (FCCPC) has approved hundreds of loan apps and cracked down on illegal operators, complaints keep rising. Citizens’ Gavel, a civil society group, says it has logged more than 1,300 cases of abuse linked to “predatory” digital lenders. Victims report harassment, defamation, data breaches, and even the circulation of fake obituaries.
“Loan sharks thrive because sanctions are weak and enforcement is poor,” said lawyer Funmi Oderinde of Citizens’ Gavel.
Despite regulatory efforts, many apps simply rebrand under new names and continue exploiting desperate borrowers. On Facebook, support groups with tens of thousands of members have sprung up, where victims share experiences and warnings.
For Mariam and countless others, what looked like a quick fix has left lasting scars. “I just needed help,” she said, “but the shame and fear they caused me will stay with me forever.
Photo credit: Punch newspaper.
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