Revealed: How loan apps are increasing interest rates

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Digital lending apps in Nigeria face scrutiny over annual interest rates exceeding 300%, affecting vulnerable borrowersConsumers suffer from exploitative lending practices, trapped in cycles of recurring debt and hidden chargesCall for CBN to enforce interest rate caps and enhance consumer protections to safeguard low-income Nigerians

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Digital lending platforms in Nigeria are facing renewed scrutiny after the Chairman of the Alliance for Economic Research and Ethics, Dele Oye, warned that some loan apps are charging annualised interest rates exceeding 300 per cent, trapping millions of financially vulnerable Nigerians in a worsening cycle of debt.

Oye called on the Central Bank of Nigeria (CBN) and other financial regulators to urgently intervene by introducing interest rate caps for digital lenders and strengthening consumer protection measures to curb what he described as exploitative lending practices.

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