The indiscriminate activities of unregulated lending platforms in Nigeria, popularly known as loan apps, have earned them the name — loan sharks. These companies often operate outside the legal, financial ecosystem and are known to prey on vulnerable individuals and small businesses, trapping them in a cycle of debt, frustration and anxiety.
Many have faulted them for being guilty of charging exorbitant interest rates and engaging in bad practices such as character defamation and invasion of their client’s privacy. As we dive in, let us explore the perspective of someone who has experienced firsthand the menace of loan sharks in Nigeria.
Mr Ola, a resident of Lagos and a supervisor in a privately-owned company, had this to say: “In 2021, I had a little emergency that I needed immediate cash to offset. When I couldn’t get someone to borrow from that moment, I decided to try this loan company.
“I have always seen their adverts online. So, I downloaded their mobile app and took…