Digital Loan Sharks Are Preying on Nigeria’s Most Vulnerable

Nigeria’s inflation crisis is wreaking havoc on ordinary citizens. With prices soaring and wages stagnating, many Nigerians are turning to digital loan apps in desperation. But what seems like a quick fix is, in reality, a trap one that exploits financial vulnerability and violates personal dignity.

Take the case of Mariam Ogundairo. In urgent need of ₦30,000, she downloaded a loan app that approved her request almost immediately but at a staggering 21.6% interest rate due in just two weeks. When she couldn’t repay on time, the app began harassing her by contacting her phone contacts, threatening her reputation. This is not a story of financial mismanagement it is a story of predatory practices that turn human desperation into profit.

Digital loan sharks are capitalizing on an economic crisis to exploit ordinary Nigerians. Students, farmers, and low-income workers alike are being trapped in debt cycles, bullied into repayment, and stripped of their privacy. The tools of harassment range from phone calls and threatening messages to the sharing of personal data without consent. These tactics are unethical, invasive, and, in many cases, illegal.

Regulators like the Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN) are beginning to act, delisting and scrutinizing abusive apps. But regulation alone is not enough. Nigerians must remain vigilant, scrutinize loan terms, and avoid granting unnecessary permissions to these apps. More importantly, there needs to be public outrage these exploitative practices should not be normalized under the guise of “financial inclusion.”

The bottom line is clear: digital loan apps can be a useful tool if used responsibly, but in their current form, many operate as loan sharks dressed in fintech clothing. The government, civil society, and tech platforms must work together to protect citizens from exploitation, and Nigerians themselves must refuse to be pawns in a system designed to profit from their hardship.

Predatory lending in the digital age is not just a financial issue it’s a moral one. And until we treat it as such, the most vulnerable will continue to suffer while others profit.