For many Nigerian youths, survival in today’s economy is no longer about saving, it is about borrowing.
With rising food prices, high transport costs, unstable income, and limited job opportunities, young Nigerians are increasingly turning to digital loan apps to bridge daily financial gaps
This newspaper reports that from Lagos to Ogun, and other states in Nigeria, young workers, students, and small entrepreneurs are increasingly turning to digital lending platforms for urgent cash to pay rent, settle school fees, fix medical emergencies, or simply buy food.
What began as occasional borrowing has, for many, evolved into a cycle of dependency.
Living on credit in a tight economy
Nigeria’s economic strain has forced many households into what analysts describe as “survival-led living.”
Rising transport fares, soaring food prices, and unstable income streams have left young earners scrambling to fill financial gaps.
With traditional banks requiring collateral and extensive documentation, digital lenders such as QuickCheck, Branch, FairMoney, Carbon, Palmcredit, Okash, Renmoney, and Aella Credit have stepped in to bridge the gap.
Most promise instant disbursement within minutes, minimal paperwork, and in some cases, loans using only a national identification number.
In an interview with our correspondent, Tunde Adebayo, a 27-year-old logistics rider in Lagos said, “I can’t wait two weeks for my salary when my landlord is knocking. If I’m short by ₦40,000, I open Palmcredit or Okash, apply, and within five minutes the money drops. But sometimes the interest is scary.”
While digital lending has improved financial access, experts warn it is also deepening vulnerability among young borrowers who often earn irregular incomes.
Borrow to pay: a growing trend
Among many youths, borrowing has become layered.
When repayment deadlines approach, some take fresh loans from other apps to settle existing debts, a practice now informally known as “borrow to pay.”
Also, Maryam Sani, a 24-year-old NYSC member in Abuja, admits she rotates loans across multiple platforms.
She said, “I’ve used FairMoney, Carbon, and Branch at different times. If one is due and I don’t have the money, I take another to clear it so they don’t start calling my contacts. It’s stressful, but sometimes you have no choice.”
Chibuzor Okeke, a 29-year-old phone accessories dealer in Port Harcourt, loan stacking became habitual.
According to him, “I started with QuickCheck for business stock. When sales slowed, I borrowed from Aella Credit to pay QuickCheck. Then I took another from Okash. Before I knew it, I was juggling four apps. You feel like you’re running, but you’re not moving.”
Unlike commercial banks, which account for only a fraction of personal borrowing among Nigerians, it was gathered that many youths rely on fintech platforms because they feel more accessible and less judgmental.
In the same vein, Esther Johnson, “I’ve tried going to a bank before,” said Esther Johnson, a 26-year-old fashion designer in Ibadan said “They asked for documents I don’t even have. With Carbon, I just use my BVN and get approved.”
The surge in digital borrowing reflects deeper structural weaknesses in Nigeria’s labour market.
A large percentage of young Nigerians work in the informal sector, where income is unstable and social protection is limited.
Although the federal government has introduced initiatives like the Nigerian Education Loan Fund (NELFUND) and the Nigerian Consumer Credit Corporation (CREDICORP) to expand structured credit access, many young people still depend on private loan apps for day-to-day survival.
Economists have warned that while consumer credit can cushion hardship temporarily, it is not a substitute for income growth.
High interest rates — driven by Nigeria’s elevated monetary policy environment — mean borrowing is expensive. When repayments exceed earnings, borrowers risk default, harassment, and damaged credit records.
National data shows that a significant portion of Nigerians rely on informal lending from friends and cooperatives, but fintech apps are rapidly expanding their footprint among tech-savvy youth.
The integration of NIN and BVN into digital verification systems has made onboarding faster and broader, particularly for those excluded from traditional banking.
Experts stressed that financial literacy, transparent lending practices, and lower interest rates are critical to preventing widespread indebtedness.
