By Jeremiah Aminu
Among numerous social vices plaguing the societal stability of Nigeria, the predatory practices of digital lending platforms stand as a pressing problem worsening the economic state of Nigerians within the country. These loan platforms, which tend to serve as a last resort for cash-strapped Nigerians, trap them in an unending cycle of strangling debts through deception, exploitation, intimidation, and defamation.
Notably, this vice unfolds through certain unethical practices. At the initial stage, these loan platforms begin with calls (even at odd hours) to remind borrowers of their unpaid debts.
Afterwards, if the loan remains unpaid, they bombard debtors with messages whereby they threaten to defame their images and those of their families. Commonly included within the content of these messages are curses which are targeted at instilling fear in the borrower for him or her to quickly resolve the payment of the loan. If this tactic fails, they then utilise their most effective instrument—defamation.
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In this regard, they contact the debtors’ contacts and frame them with derogatory labels such as “ritualist killer”, as can be seen in the case of an anonymous university student in a news report by The PUNCH who obtained a N70,000 loan but was unable to refund it on time. In more horrid cases, some of these platforms adopt extreme strategies of defamation.
An instance of this was recorded in a report by Punch on September 4, 2025, whereby a female participant, interviewed by Citizens’ Gavel, revealed that her data was breached by a loan platform, thus giving them the opportunity to upload a fake obituary of her. Not only that, they also shared a nude photo with her contacts as well, all of which violates the NDPA Act of 2023 which centres around protecting the personal data and privacy of Nigerians and providing a means of recourse for Nigerians in cases of illegal data breaches and manipulation.
It is in this same regard that The New Daily Prime interviewed two Nigerians to talk about alleged unethical practices commonly employed by these platforms in forcing debtors to refund their obtained loan. The first participant, who requested that his identity remained anonymous, revealed the deceptive strategies that are commonly used by lending platforms to entice Nigerians and entrap them in a cycle of increasing debts.
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He said, “Initially, they display a list of juicy offers, most especially low interest rates and long repayment durations, all in a bid to make you ‘feel at home’.
“However, these offers are false. The advertised interest rates are untrue as well. Instead, the debtor tends to pay twice the loaned amount.”
He further stated, “They are not all bad though. Some of them still give debtors the grace to make half payment before fully refunding the money.
“Yet, I will not advise anyone to obtain a loan without savings on the side to refund it in cases of emergency due to the incessant disturbance that normally accompanies unpaid loans.”
The second interviewee, who also requested that her identity remained anonymous, relayed her ordeal regarding her obtained loan: “My experience with these loan apps has not been friendly”, she lamented. “Despite this, I cannot deny that they do come to my rescue when I am broke and urgently need money. For instance, there was a time I obtained a loan when the money I was expecting did not arrive on time. As such, I had to secure a loan, promising to refund it within two weeks. That is to show you how efficient they can be as my go-to apps when I urgently need money.”
However, she expressed the dismal events that accompanied the securement of the loan.
She noted, “Due to pressing academic expenses, I was unable to meet their stipulated deadline. That was when everything went haywire. They even called at odd hours and began raining curses such as “you will die”, as well as other nasty comments. They have numerous contacts such that the more you block them, the more many others keep popping up to send you threatening messages that are targeted at the repayment of your unpaid loan. The worst of it all is that they communicate with your contacts concerning your loan. They even called my mother in this respect to inform her of my unpaid loan.”
The screenshots of the text messages sent by the second participant revealed the grim degree of intimidation adopted by the loan app. One of the messages read: “Value your peace and reputation while you still can. By 2 p.m., if you fail to act wisely, your name and image will be destroyed publicly without restraint. Pay now.”
Another read, “Don’t let us disgrace you and your family. Don’t let us rub you and your family to the mud. PAY YOUR LOAN NOW!!! BE WARNED!!!”
It is in response to these practices that the Federal Competition and Consumer Protection Commission (FCCPC) was tasked with the responsibility of addressing complaints relating to the unethical operations of these lending platforms.
The Vice Chairman of the body himself, Tunji Bello, commented on the economic situations of Nigerians due to the measures taken by these loan platforms.
He explained, “For too long, Nigerians have endured embarrassment, data breaches, and unethical practices by unregulated digital money lenders. No consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.”
In light of all that has been said so far, what, then, are the measures that can be enacted to stem the increasing predation and exploitation of lending platforms in Nigeria?
To begin, Nigerians should carefully review the terms and conditions of these loan platforms before borrowing. This will enable them to identify exploitative terms that may trap them in a cycle of unsustainable debt. Even if these exploitative terms are not overtly stated, Nigerians are advised to borrow responsibly so that they can refund the loan on or before the due date.
Moving further, in cases of harassment or threats issued by any loan platform, Nigerians should tender their complaints to institutions tasked with addressing such an issue such as the Federal Competition and Consumer Protection Commission (FCCPC). This body will ensure that the loan platform, that is guilty of violating the NDPA (Nigeria Data Protection Act) Act of 2023 (which prohibits the unauthorised use and dissemination of personal data and information), faces sanctions and halts their operations.
Lastly, Nigerians can join financial fellowships (or groups) such as cooperative societies. Here, they can obtain loans with minimal interest rates and, as a result of their flexible repayment systems, can also refund the loan with ease.
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The practices of these lending platforms stand as a prominent problem preying upon the economic vulnerability of Nigerians. Despite the quick process that characterises their lending system, they often employ different unethical practices to exploit and defame Nigerians through falsely advertised interest rates, incessant phone calls, and threatening messages, all of which pose a problem to the personal security of Nigerians. Eliminating this vice from the Nigerian space requires the collective effort of every Nigerian citizen.
In this regard, Nigerians should ensure that they tender complaints of defamation by these loan platforms to regulatory bodies such as Federal Competition and Consumer Protection Commission (FCCPC) in order to guarantee the protection of the economic state, private data, and personal dignity of Nigerians within the country.
