Loan applications helping or adding to Nigeria problems ?

In Nigeria, over 100 million people live in extreme poverty since the 2020 COVID-19 pandemic which gave the country’s floundering economy further pounding and in no time, Africa’s largest economy by gross domestic product slipped into a recession for the second time in five years. It is not uncommon for many hungry Nigerians to borrow little from a neighbour, friend, or relative to survive for a day

Photo - (Depressed man)

Most bad loan providers have been frustrating life of most Nigerians. Through research over 50% of the loan providers are not there to help you but to frustrate you in such a way that you will regret your life. Moreover, when it comes to a loan, it’s all business but being too greedy and extorting money from desperate and helpless Nigerians in such a manner is unacceptable.

There are some good loan app and also bad loan app. Like we all know how to notice bad loan app

(1) Shorter loan duration like (7-14 days)

(2) Higher interest rate

(3) They treat their customers like trash

(4) They charge for card verification before approving a loan

Even most loans which where worst than now have been scrapped by the Nigerian government just like 

Sokoloan

GMoney loan app

LionCash

9Credit

And some others

There are some other good loan app that people do go for.

Fairmoney

KashKash

Aella Credit

Migo

Quick Check

OKash

New credit

But now is Nigeria economy helping the people or society who has loaned from most of this app be able to pay back ?

Photo - (Lagos , Balogun market)

Nigeria prevailing economic circumstances make things difficult for well-meaning borrowers. 

According to Research Inflation hit 15.6% in January 2022, but recent events like fuel and diesel scarcity have served to only make things worse. 

The constant currency devaluation has not helped matters either. Today, Naira exchanges on the black market at ₦590/$1.

The cost of living in Nigeria is impacted, even food takes up over 55% of the average Nigerian household’s expenditure. Therefore repayment of loans is definitely going to take a hit.