Amidst rising inflation and economic hardships, Nigerians have turned to credit facilities to make ends meet, borrowing a total of N3.82tn from banks as of January 2024. The surge in personal loans by 14.3% to N3.028tn and retail loans by 3.6% to N794.79bn reflects the struggle Nigerians face due to inflation and dwindling purchasing power. A study by SBM Intelligence revealed that 27% of Nigerians across income categories are now resort to loan apps to cope with record inflation.
While public servants seek loans and advances from state governments to alleviate the economic strain, loan companies have seen a significant increase in loan requests. The removal of fuel subsidies and overall economic challenges have prompted individuals and businesses to rely on loans for financial stability. Despite the relief offered by loan apps, structural issues remain that only government intervention can address.
As the nation grapples with one of its worst economic crises, the reliance on loans underscores the urgent need for sustainable solutions to improve living conditions and strengthen the economy.