More than 450 fintech and loan apps operate in Nigeria, including Easymoni, Branch, Okash, Alend, and Kuda, many targeting vulnerable users with aggressive online ads on Facebook, Instagram, TikTok, and YouTube. While some are licensed by the Central Bank of Nigeria (CBN), others operate illegally, offering non-collateralised loans at exorbitant interest rates that can exceed 3,600% annually. Borrowers like Shehu Abdullahi, a taxi driver in Abuja, say they turn to these apps out of desperation—Abdullahi borrowed from two apps to cover his son's emergency surgery after an accident. "Responsible people don't borrow from loan apps for the fun of it," he said. "They're often forced to borrow because of emergencies." Defaulters face relentless harassment, with some operators circulating defamatory obituaries and shaming messages to family and employers. A licensed operator warned borrowers to meet repayment terms but acknowledged unregulated apps use intimidation as a recovery tactic. Data analyst Gideon Mordi noted that CBN regulations allow fines of up to ₦100 million or 1% of annual turnover for non-compliant firms, but enforcement remains weak.
Shehu Abdullahi's story exposes the cruel choice many Nigerians face: risk financial ruin or watch a loved one suffer. These loan apps thrive not because of innovation, but because formal safety nets have collapsed. When a father must borrow at 3,600% interest to save his child, the real failure lies beyond the fintech sector—it's in the absence of accessible emergency support. No amount of regulation will fix that gap if the state continues to look away.
