‘27% of Nigerians use loan apps to maintain living expenses’

A new study conducted by SBM Intelligence has revealed that 27 per cent of Nigerians across different income categories now resort to loan apps to keep up with their living expenses in the wake of a record inflation.

Recall that there has been a proliferation of online banks that offer credit facilities primarily targeted at people in the low-income bracket. There are also about 161 loan apps with full approval from the Central Bank of Nigeria (CBN) authorities to operate.

However, reported cases of unethical practices from these loan apps do not deter or quench Nigerians’ appetite for credit facilities from these digital lenders.

Although the study primarily examined how much Nigerians in different income categories spend on food in recent times, an interesting part of the study was how Nigerians are adapting to the increase in the cost of living lately.

The study also reports that 49 per cent of Nigerians who earn the minimum wage of N30,000 and below spend it all on food.

According to the study, 47 per cent of Nigerians earning between N31,000 and N50,000 reportedly also spend all their income on food, while those in the income bracket of N51,000 to N80,000 spend over 60 per cent of their income on food.

The report sheds light on how Nigerians are adapting to record inflation primarily caused by high food prices.

In its latest inflation report, the National Bureau of Statistics (NBS) stated that Nigeria’s inflation rate stands at 26.72 per cent with food inflation at 30.64 per cent.

Nigeria has been battling unending monthly inflation for the ninth consecutive month as inflation stands at its highest in almost two decades due to the recent fuel subsidy removal and the volatility in the foreign exchange market.