One-click debt-trap: How product design fuels predatory lending in Nigerian fintech
- Micheal Orji received a loan he never applied for, leading to harassment from the lender Newcredit.
- Esther Adewunmi experienced a similar situation with Palmcredit, receiving a loan after declining an application.
- Digital lenders in Nigeria have increased significantly, with 400 operating by September 2025.
The situation surrounding digital lending in Nigeria highlights a critical need for stronger consumer protections and ethical standards in fintech. While regulations are a step in the right direction, the effectiveness of enforcement and the accountability of lenders remain major concerns. It is essential for consumers to be educated about their rights and the potential pitfalls of digital lending to avoid falling into debt traps.
