The number of digital lenders in Nigeria has skyrocketed by 64% in the past year. This surge reflects Nigerians’ growing need for credit as they face rising prices and weaker purchasing power due to inflation.
The Central Bank of Nigeria (CBN) reports that Nigerians borrowed heavily in 2023, with loan applications surging through mobile apps and other fintech channels. This increased demand is likely due to the high cost of living, with inflation exceeding 33% in April 2024.
While digital lenders offer easy and quick access to funds, concerns exist about high-interest rates and unethical debt collection practices. The Federal Competition and Consumer Protection Commission (FCCPC) has delisted some lenders and is investigating data privacy breaches by others. The rise of digital lending highlights the challenges Nigerians face amid economic hardship, but also raises questions about responsible lending practices.
Source: Business Day