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Cash Crisis Fuels Loan App Nightmare in Nigeria

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Cash-strapped and in dire need of N30,000 (about $20), Mariam Ogundairo turned to a loan app, downloading it and registering her phone number.

The money was quickly sent over but came with a 21.6 percent interest rate, due in two weeks.

Like many in Nigeria, battered by inflation, Ogundairo was too broke to pay back what she owed.

Then came a deluge of harassment — a tactic that has become the hallmark of many loan apps in Africa’s fourth-largest economy.

“They started calling my phone contacts when I couldn’t pay back on time, saying I owed them. “I lost my security, and it makes me so sad and scared,” Ogundairo told AFP.

Such loan apps in Nigeria, branded “predatory” by campaigners, are texting threats and leaking sensitive photos to their mobile phone contacts when people squeezed by the country’s ongoing economic crisis cannot pay up.

Often enticed by false promises of low interest rates, thousands of Nigerians have turned to personal finance apps seeking quick access to short-term loans as galloping prices put pressure on incomes, with inflation standing at 21.8 percent at the end of July.

Ogundairo struggled through the embarrassment for weeks until she was able to pay off her balance.

– ‘Quick fix’ gone wrong –

“A friend recommended it because I needed a quick fix,” another victim, a 24-year-old who took out a loan two years ago as a university student and asked his name not be used, told AFP.

After spending more than N300,000 conducting laboratory investigations for his final thesis and still needing more funds to complete his research and beat submission deadlines, the money seemed like a lifesaver.

He took out N70,000 when he was a final-year student in 2023. He was meant to pay back about N110,000 within a month, but was too broke.

The loan app then began sending messages to his phone contacts that he was a “ritualist killer”. He said he was not aware he had given the app access to his contacts.

“A couple of my coursemates got the messages.

“It wasn’t the case of unwillingness to pay; it was just a case of impossibility,” he told AFP.

An increasing number of Nigerians have turned to personal loans following reforms by President Bola Tinubu to shock the country’s moribund economy and remove costly subsidies.

Though some economists have voiced approval for the measures, Tinubu’s policies have sent inflation skyrocketing and the value of the naira plunging, hitting many ordinary Nigerians in their pockets.

Even when apps mislead people on interest rates, they can often provide better rates than traditional banks — with the benchmark interest rate at 27.5 percent, conventional loans can come with interest rates at 27 to 48 percent.

While there was no breakdown for so-called fintech apps, lenders in the country handed out about 470 billion naira in personal loans in the last quarter of 2024.

By December, outstanding personal loans jumped “by 21.27 percent to 3.82 trillion naira compared with the level at end-September 2024”, the Central Bank of Nigeria (CBN) said in March.

As of the same month, the Federal Competition and Consumer Protection Commission (FCCPC) approved 408 loan apps, up from 269 in September 2024, with 42 receiving conditional clearance.

The CBN approved 23 apps, up from 14 in the third quarter of last year.

Forty-seven were delisted and 88 placed on watchlists for various offences, including harassment.

The watchdog had said in the past that some loan apps were operating in the country illegally.

– Loan sharks ‘thrive’ –

Many of the loan apps’ ease of access and swift processing create a trap, said Funmi Oderinde, a lawyer at Citizens’ Gavel, a civil society organisation that has been pushing back against the lenders.

The organisation has so far received at least 1,300 complaints over “predatory digital loan apps”.

“These promises are deceptive, and borrowers soon face unethical recovery practices such as defamation, harassment, threats, breaches of data privacy, arbitrary fines, and excessively high interest rates aimed at pressuring them into repayment,” Oderinde said.

Some victims of the harassment have formed different support groups on Facebook. One such group has more than 21,000 members.

A victim told Citizens’ Gavel that, after her phone was accessed remotely, a fake obituary and a real nude photo were shared with her contacts by a loan app.

According to Oderinde, two of the people who approached the organisation for legal help “could have died” due to harassment from loan app agents.

The FCCPC, in a note sent to lenders in August, said it would “periodically monitor interest rates for services of consumer lending, and ensure rates are not exploitative”.

But despite regulatory moves, dozens of apps continue to operate under new names, and desperate borrowers often do not check approval lists before applying.

The result is that loan sharks “thrive”, Oderinde said, “because of weak sanctions and poor enforcement”.

AFP

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FG Launches Nationwide Training to Boost Livestock Extension Capacity

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The Federal Ministry of Livestock Development has begun a three-day national capacity-building programme aimed at upgrading the technical skills of Livestock Extension Officers from all 36 states and the FCT.

The workshop focuses on strengthening field advisory services and harmonising extension communication across the country.

Declaring the event open in Abuja, the Permanent Secretary, Dr. Chinyere Ijeoma Akujobi, represented by the Director of Livestock Extension and Business Development, Mr. Joseph Ako, reaffirmed the Ministry’s commitment to building a modern and commercially viable livestock sector capable of driving food security and economic diversification.

She described livestock extension officers as central to the sector’s transformation agenda, noting that they serve as the crucial link between research institutions and rural farmers.

Earlier in his welcome remarks, Mr. Ako encouraged participants to take full advantage of the intensive training sessions and emphasised that improved professional capacity among extension workers will translate into better support for livestock farmers nationwide.

The programme is anchored on the National Livestock Growth Acceleration Strategy, which places strong emphasis on effective extension services as a core pillar for boosting productivity, expanding modern production systems and promoting sustainable livestock management practices.

Meanwhile, participants will receive training in key thematic areas such as Good Animal Husbandry Practices, animal welfare, feed and nutrition, disease management, biosecurity, waste management, One Health principles, breeding and reproduction, humane handling, housing, record keeping and participatory extension methods.

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Osun PDP Congress: Thugs Arrested, Alleged Governor Makinde Mobilised Them

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Scores of Hoodlums Arrested, confessed Governor Makinde mobilised them. Members of the Oyo state chapter of the Peoples Democratic Party (PDP) dominated today’s governorship primaries of the PDP held at Osogbo, investigation and eyewitness accounts at the venue have revealed.

Buses filled with PDP members were seen entering from both Iwo and Ikire end of Osun state last night and early this morning with many of the buses stopping at Adolak hotel, the venue of the congress.

A check through the hall revealed that Osun PDP members were not in attendance even though the Ibadan based zonal youth leader of the PDP was identified as the anchor mobilised of the Oyo state PDP members for the Osun Congress.

A chat with some of the individuals at the Congress confirmed that they were mostly from Oyo state with some of them actually confirming that they were recruited to attend.

The presence of Police men and women from Oyo state who provided security cover for the mobilised party members.

Some political thugs were however arrested and they narrated how they were mobilised from the Government House in Oyo state.

On why Oyo PDP members had to be mobilised for the Osun Congress, a party chieftain from Oyo state who was also present said “Osun PDP did not conduct the mandatory three adhoc delegates to vote at the Congress.

“ So we fill the vacancies with our people from Oyo state. We cannot allow PDP to die here. That is why we have to so mobilise”, the source noted.

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President Tinubu Nominates Gen Christopher Musa as New Defence Minister

In a letter to Senate President Godswill Akpabio, President Tinubu conveyed General Musa’s nomination as the successor to Alhaji Mohammed Badaru Abubakar, who resigned on Monday.

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President Bola Ahmed Tinubu has nominated General Christopher Gwabin Musa as the new Minister of Defence.

In a letter to Senate President Godswill Akpabio, President Tinubu conveyed General Musa’s nomination as the successor to Alhaji Mohammed Badaru Abubakar, who resigned on Monday.

General Musa, 58, on December 25, is a distinguished soldier who served as Chief of Defence Staff from 2023 until October 2025. He won the Colin Powell Award for Soldiering in 2012.

Born in Sokoto in 1967, General Musa received his primary and secondary education there before attending the College of Advanced Studies in Zaria.

He graduated in 1986 and enrolled at the Nigerian Defence Academy the same year, earning a Bachelor of Science degree upon graduation in 1991.

General Musa was commissioned into the Nigerian Army as a Second Lieutenant in 1991 and has since had a distinguished career.

His appointments include General Staff Officer 1, Training/Operations at HQ 81 Division; Commanding Officer, 73 Battalion;

Assistant Director, Operational Requirements, Department of Army Policy and Plans; and Infantry Representative/Member, Training Team, HQ Nigerian Army Armour Corps.

In 2019, he served as Deputy Chief of Staff, Training/Operations, Headquarters Infantry Centre and Corps; Commander, Sector 3, Operation Lafiya Dole; and Commander, Sector 3 Multinational Joint Task Force in the Lake Chad Region.In 2021, General Musa was appointed Theatre Commander, Operation Hadin Kai.

He later became Commander of the Nigerian Army Infantry Corps before being appointed Chief of Defence Staff by President Tinubu in 2023.

In the letter to the Senate, President Tinubu expressed confidence in General Musa’s ability to lead the Ministry of Defence and further strengthen Nigeria’s security architecture.

Bayo OnanugaSpecial Adviser to the President,(Information and Strategy)December 2, 2025

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