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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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A Review of Akwa Ibom State Government’s July Delivery Meeting

Stakeholders at the meeting delivered goodwill messages, commending Governor Umo Eno for institutionalising the Delivery Meeting as a platform for transparency, accountability, and inclusive governance.

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Image: Governor Umo Eno

  1. The Akwa Ibom State Government’s Monthly Delivery Meeting concluded its two-day July session, with Governor Umo Eno presiding over an extensive review of the administration’s strategic projects across key sectors.
  2. Hon. Aniekan UmanahCommissioner for Information, reported that the meeting forms part of ongoing efforts to monitor implementation, evaluate progress, and ensure the timely delivery of projects under the ARISE Agenda.
  3. In his opening remarks on Day Two, Governor Eno reiterated that the Delivery Meeting has become a vital accountability mechanism for tracking the performance of government projects and ensuring that every initiative delivers measurable value to the people of the State.
  4. He stressed that the sessions provide an opportunity for honest appraisal, collective problem-solving, and improved coordination among implementing agencies as the administration continues to deliver on its commitments under the ARISE Agenda. Quoting the Greek philosopher Socrates, the Governor said, “An unexamined life is not worth living.”
  5. Before the commencement of the Day Two session, Governor Eno paid an unscheduled visit to the ARISE Palm Resort, an audacious tourism project built on a 73-hectare gully reclamation site, to verify claims made during the previous day’s presentations and assess firsthand the level of progress on the facility, which is scheduled for commissioning later in the year.
  6. The meeting received comprehensive presentations on key projects across multiple sectors of the state’s development programme, including agriculture, trade and investment, maritime and transportation, health, internal security, housing, tourism, local government administration, direct labour projects, and other flagship initiatives.
  7. Under the agricultural sector, presentations were made on the Ibom Model Farm, Agric Equipment Leasing Company, Distribution of Oil Palm Seedlings Programme, Dakkada Global Oil Palm Project, and the Akwa Ibom Agricultural Development Programme (AKADEP), with emphasis on mechanised farming, food security, and job creation.
  8. The Ministry of Trade and Investment presented updates on the International Market, Ikot Ekpene, highlighting its role in boosting commerce, attracting investment, and strengthening regional trade.
  9. The meeting noted the significant progress recorded on the project and urged the contractors to sustain the pace of work.
  10. In the maritime and transport sector, updates were presented on the Oron Maritime Infrastructure Project, which is aimed at improving maritime transportation, boosting commerce, and stimulating economic growth as part of the administration’s broader Blue Economy development initiatives.
  11. The health sector presentation covered the Ibom International Hospital, General Hospitals in Ukanafun, Ibiono Ibom, Ikot Ekpene, Iquita-Oron, Ikot Ekpene Udo, and other State of Emergency Health Projects, reinforcing the government’s commitment to providing accessible, affordable, and quality healthcare services.
  12. The Ministry of Internal Security and Waterways presented progress on the Counter Terrorism Unit Base, aimed at strengthening security infrastructure and enhancing public safety across the state.
  13. The Ministry of Housing provided updates on the Doctors’ Residence and the Executive and Legislative Quarters, projects aimed at providing decent accommodation while supporting urban renewal and improving living standards.
  14. In the tourism sector, progress on the Ibom International Hotel at the Convention Arena was reviewed, with emphasis on repositioning the facility to boost tourism, hospitality, and investment opportunities.
  15. Updates from the Ministry of Local Government and Chieftaincy Affairs covered the Chairmen’s Lodges, with an assurance that all 31 lodges will be completed by December 2026 to strengthen administrative efficiency at the grassroots level.
  16. The Direct Labour Committee reported progress on the Youth Development Centres, the One Project Per Local Government Area (Phase II), the Judiciary Village, and the House of Assembly Complex, all aimed at strengthening governance infrastructure and promoting youth development.
  17. Other strategic projects reviewed included the ARISE Shopping City, ARISE Park Beach Villas, AKBC Project, Model Secondary School, Senior Citizens Centre, and the Nigeria Formr Women Project, reflecting the administration’s broad development agenda across multiple sectors.
  18. Stakeholders at the meeting delivered goodwill messages, commending Governor Umo Eno for institutionalising the Delivery Meeting as a platform for transparency, accountability, and inclusive governance.
  19. Senator Effiong Bob commended the Governor for consistently engaging stakeholders in the governance process, noting that the ARISE Agenda is making measurable progress while praising the administration’s openness and transparency. Senior Advocate of Nigeria, Assam Assam, described the meeting as the most impactful yet, citing visible progress across sectors, particularly in healthcare infrastructure and service delivery.
  20. The Speaker of the Akwa Ibom State House of Assembly, Rt. Hon. Udeme Otong, lauded the Governor’s leadership and assured him of the continued support and collaboration of the State House of Assembly.
  21. The Oku Ibom Ibibio and President-General of the Supreme Council of Traditional Rulers, His Eminence, Ntenyin Dr. Solomon Etuk, JP, expressed pride in the administration’s developmental strides and commended Governor Eno’s inclusive approach to governance.
  22. In his closing remarks, Governor Umo Eno appreciated all participants, Heads of Ministries, Departments and Agencies (MDAs), Delivery Advisors, stakeholders, and contractors for their contributions to the two-day review exercise, noting that the sessions were rigorous but necessary in strengthening governance and ensuring accountability.
  23. The Governor stated that the administration is entering its “harvest season” as it gradually winds down its first term, adding that observations from the meeting would be used to further improve service delivery and implementation efficiency.
  24. He reaffirmed the government’s commitment to completing all ongoing projects within set timelines and urged implementing agencies to sustain the momentum and maintain high standards in project execution for the benefit of the people of Akwa Ibom State.
  25. At the conclusion of the Delivery Meeting, Governor Eno led stakeholders on an inspection visit to the Ibom Convention Arena to assess ongoing work on the 200-bed Ibom International Hotel project, which is billed for commissioning later in the year.
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Explosion rocks Apapa tank farm; NPA, NIMASA move to curtail spread

Following the outbreak the fire service departments of both the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) moved in to curtail the spread of the inferno.

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Panic erupted at the Lagos tank farm cluster at Ibafon, Apapa, on Friday morning after a fire broke out at the Bono Tank Farm, located within the Best Energy Tank Farm complex.

The inferno sent residents and workers in the area fleeing for safety as emergency responders moved in to contain the blaze.

Following the outbreak the fire service departments of both the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) moved in to curtail the spread of the inferno.

Efforts to obtain comments from the management of Bono Tank Farm and Best Energy Tank Farm were unsuccessful, as phone calls and text messages sent to their representatives were neither answered nor acknowledged.

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FG slams 8-count charges on Adeyemi over fake agency ” I’m not a criminal”, he defends

It was learned that the alleged ‘‘fake’’ Presidential Economic Advisory Council/Presidential Foreign Intervention Promotion Council was allocated N1.302 billion in the 2026 Budget of the Federal Government.

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Photo: Gbajabiamila, and Adeyemi

The Federal Government has filed an 8-count charges against Adeniyi Adeyemi, convener of a purported Presidential Foreign Intervention Promotion Council, PFIPC, over the controversy trailing the agency.

Adeyemi, however, fought back claiming that he was given an appointment letter.

Adeyemi, during an appearance on Channels Television claimed that the Chief of Staff to the President, Mr. Femi Gbajabiamila gave him an appointment letter, insisting that he is not a criminal.

However, it was learned that the alleged ‘‘fake’’ Presidential Economic Advisory Council/Presidential Foreign Intervention Promotion Council was allocated N1.302 billion in the 2026 Budget of the Federal Government.

In a statement on Wednesday, Bayo Onanuga, presidential spokesperson, said the charges were filed by the Police on November 27, 2025, against Adeyemi and two accomplices at the Federal High Court in Abuja.

Onanuga said Adeyemi is expected to appear in court on July 27, 2026.

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