Many households’ ability to acquire daily and fundamental requirements is deteriorating as a result of income erosion due to high inflation and stagnant salaries, particularly among low and middle-income earners. As a result of this trend, many people are forced to rely on loans, family, and friends for survival.
Many Nigerians are facing hunger today, thanks to a 50% increase in inflation from 9.01 percent when the Buhari administration took office in 2015 to 17.93 percent in May 2021, compared to a 40% increase in the minimum salary from N18,000 to N30,000, which many states are finding difficult to pay.
They bemoaned the fact that their monthly take-home income could no longer afford to send them home due to the country’s high cost of living. Many Nigerians who have limited access to loans due to a lack of collateral are becoming increasingly reliant on the fast-growing collateral-free digital lending or loan applications to acquire emergency funds and meet personal obligations in a timely manner.
However, providing personal information such as a BVN, home address, and debit card data, including the PIN, is required to receive loans through these platforms. Most loan applications provide access to the applicant’s phone contacts and other sensitive information on the applicant’s mobile device if permission is granted.
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