Let the poor breathe
New report shows that Nigerians are borrowing more money than usual
Good morning, Big Brains. I’ve been conducting a study and I have concrete evidence that proves that all writers have anxiety, at least the hot ones. Totally unrelated but what’s the point of being the writer of the coolest newsletter if you can’t say rubbish sometimes. Also, hi Jubilee (I love reading your comments).
- Margaret
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Reading time ~3 mins
Let’s get into today’s edition:
Consumer credit surge shows that Nigerians are borrowing more than usual
Dangote accuses international suppliers of deliberately frustrating the refinery’s plans
Gunmen kill seven, abduct over 100 in violent attack on Nigerian village
The Big Deal
Consumer credit surge shows that Nigerians are borrowing more than usual
Typically, we’d say that a wise man once said that tough times don’t last but tough people do. Clearly that man wasn’t really wise nor was he Nigerian because if he was he'd know that tough people have limits. And unfortunately, Nigerians have been pushed to theirs.
Consumer credit in Nigeria has now risen up by 12%, meaning that Nigerians are borrowing more money compared to last year as a means of survival. A report by the Central Bank of Nigeria said the amount of loans collected by Nigerians went up to ₦3.9 billion in January 2024.
Personal loans, which were recorded at ₦2.64 billion in December 2023, rose to over ₦3 billion, making up 79% of the total amount while retail loans made up 21% of the total amount.
Why is this a big deal?
A study by SBM Intelligence shows that 27% of Nigerians across different income groups are now using loan apps to manage their living costs due to high inflation. In May, the National Bureau of Statistics announced that the inflation rate has risen to 33.95% and this influenced the CBN’s decision to increase the lending rate to 26.25%.
Twenty-eight-year-old Feranmi, who works for a fintech that specialises in digital lending, told The Big Daily that his company has onboarded more new users in the last six months than the target figure they hoped to hit by the end of the year. While Feranmi is thrilled to be leading the marketing efforts that achieved this result, he is also worried about what this really means for the country.
“Honestly, lending services are more marketable now than ever because people are hungry. It is sad to see, especially when it starts hitting close to home. One of my guys recently opened up about how he has been hopping from one loan app to another because his salary just isn’t just cutting it anymore. Crazy times for real.”
As the inflation rate gets higher, we expect more Nigerians to explore lending apps as their survival strategy.
Dangote accuses international suppliers of deliberately frustrating the refinery’s plans
If you’ve been wondering why the Dangote Refinery has not started supplying fuel to the country as promised by Aliko Dangote in May, we’ve got an idea why.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, has accused international oil companies (IOCs) in Nigeria of trying hard to prevent the success of Dangote Oil Refinery and Petrochemicals.
Edwin said that the international oil companies have been intentionally making it difficult for the refinery to buy local crude oil. They’ve also been charging higher prices than normal, which has forced the refinery to buy oil from faraway places like the United States, where it costs more.
He also complained about the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), saying that the agency has been giving licences to some marketers without following due process to bring in low-quality refined products from other countries.
There’s a 2017 report that backs this claim…
In September 2017, a study by an international group called Public Eye revealed that dirty and harmful fuels were being shipped in large quantities from Rotterdam and Amsterdam, The Netherlands, ports to Africa. Up to 25% of the gasoline and diesel used in West Africa comes from the ports of Amsterdam, Rotterdam, and Antwerp.
Edwin also added that the refinery follows strict regulations that protect the environment and their products have been shipped to Europe and other parts of the world where they hold suppliers to very high standards. He made a plea to the federal government to consider helping the refinery move past this roadblock because their aim is to “grow the economy”.
Gunmen kill seven, abduct over 100 in violent attack on Nigerian village
In a tragic incident on Saturday night, gunmen attacked Maidabino village in Katsina state, resulting in seven deaths and the abduction of more than 100 people, including women and children. Witnesses said the attackers arrived on motorcycles and fired their guns continuously, causing residents to run for their lives.
Local police spokesperson Abubakar Aliyu Sadiq confirmed the casualties and said there are ongoing investigations into the attack. Muhammad Sani, whose sister was among those abducted, told Aljazeera about how scared the remaining villagers who didn’t flee to safety are while awaiting news of their loved ones.
Other eyewitnesses said the violent attack lasted over six hours and the gunmen blocked roads leading to Maidabino. They also reportedly burned shops, vehicles, and livestock.
The attack shows the security challenges facing the northern and central region of Nigeria and also displays a need for the government to be more intentional about protecting the vulnerable population.
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It's sad to hear about the violence, deaths and kidnappings in the North. Lawlessness in a country with a sitting president and the rule of law.