A new study conducted by SBM Intelligence reveals that 27% of Nigerians across different income categories now resort to loan apps to keep up with their expenses in the wake of record inflation.
There has been a proliferation of online banks that offer credit facilities primarily targeted at people in the low-income bracket. There are around 161 loan apps with full approval from the Nigerian regulatory authorities to operate.
The reported cases of unethical practices from these loan apps do not seem to quench Nigerian’s appetite for credit facilities from these digital lenders.
Food spending
Although the study primarily examined how much Nigerians in different income categories spend on food in recent times. An interesting part of the study was how Nigerians are adapting to the increase in the cost of living in recent times.
The study also reports that 49% of Nigerians who earn the minimum wage of N30,000 and below spend it all on food.
According to the study, 47% of Nigerians earning between N31,000 and N50,000 reportedly also spend all their income on food while those in the income bracket of N51,000 to N80,000 spend over 60% of their income on food.
Food inflation in Nigeria
The report sheds light on how Nigerians are adapting to record inflation primarily caused by high food prices.
In its latest inflation report, the National Bureau of Statistics stated that Nigeria’s inflation rate stands at 26.72% with food inflation at 30.64%.
Nigeria has been battling unabating monthly inflation for the ninth consecutive month as inflation stands at its highest in almost two decades.
The recent fuel subsidy removal and the volatility in the foreign exchange market.
The Federal government has declared a state of emergency on food security in the country and approved a N35,000 wage award for six months to support Nigerians in these hard times.