By Opeyemi Adelakun
For an increasing number of Nigerians, meeting everyday expenses has become a race between dwindling income and rising bills.
Food, transportation, rent, school expenses and other essential costs continue to put pressure on household finances, leaving some people searching for immediate ways to bridge the gap between what they earn and what they need.
For some, sports betting has become an attempt to make quick money. For others, digital loan applications have become a readily available source of emergency cash.
The two activities operate differently, but they are increasingly part of the financial coping strategies of Nigerians dealing with urgent expenses.
While a successful bet can produce an immediate return, a digital loan provides money that must be repaid, often within a specified period and with additional charges.
A recent report on Nigeria’s digital lending industry found that borrowers often turn to loan apps because they can obtain money within minutes, with little paperwork and without the collateral traditionally required by banks.
The Federal Competition and Consumer Protection Commission (FCCPC) maintains a register of approved digital money lenders and has continued to warn Nigerians against unregistered operators. The Commission has also taken enforcement action against digital lenders over consumer-rights and data-protection concerns.
In an interview with StarnewsNG, Nigerians shared how betting apps, loans has helped them survived Nigeria economic downturn.
‘I use the loan to survive until payday’
Abieba Emeka, a Lagos-based private-sector worker in his early 30s, taking a loan is not something he considers a source of income.
He described it as a temporary bridge between his salary and the bills waiting for him.
According to him, a ₦50,000 or ₦100,000 loan can make the difference between meeting an urgent obligation and allowing it to become a larger problem.
“Sometimes my salary finishes before the month ends. If there is an emergency, I use a loan app because I cannot wait for the next salary,” he said.
He said the money has helped him pay for food, transport and other urgent household expenses when his income was insufficient.
“The problem is that you have to pay it back. If another bill comes before you finish paying the first loan, you are tempted to borrow again.”
That pattern is one of the major concerns surrounding digital lending.
A 2024 consumer-protection survey cited in reporting on Nigeria’s digital-credit market found that 37 per cent of surveyed digital-credit users had been unable to repay at least one loan, while 17 per cent reported cutting food spending to repay debt.
‘Betting sometimes gives me money for emergencies’
Also, Akinfenwa Tunde, a young graduate who works irregular jobs, sports betting has become another way of trying to raise money when his earnings fall short.
He said he does not regard betting as a dependable salary but admitted that there have been occasions when winnings helped him settle immediate expenses.
“There are days when you need ₦10,000 or ₦20,000 and you don’t have it. If you are lucky, betting can give you something,” he said.
He said some of his winnings had gone towards transport, food and other personal expenses.
But he acknowledged that the practice can easily become dangerous.
“The problem is when you lose and start thinking you must recover the money. That is when you can put more money into it than you planned.”
That distinction is important because a betting win may provide temporary relief without addressing the underlying income problem.
‘The loan helps me pay bills, but the repayment is another bill’
Madam Blessing, a self-employed woman, said digital lending has helped her meet business and household obligations during difficult periods.
She said she has used borrowed money to restock goods and deal with urgent expenses.
“Sometimes the money I need is not much. I just need something to keep the business moving. If I borrow ₦30,000 and use it to buy goods, I can sell and repay,” she said.
But she said borrowing becomes difficult when the money is spent on consumption rather than something capable of generating additional income.
“If you borrow for food, transport or another bill, the money is gone. You still have to find the repayment later.”
That concern echoes the warning from financial experts that borrowing can be reasonable when credit creates economic value, but becomes dangerous when new borrowing is used simply to settle previous debts.
‘I started with small bets’
Meanwhile, Daniel, a 27-year-old freelancer, betting began as entertainment before gradually becoming something he relied on when money was tight.
“At first, it was just football. I would stake a small amount for fun. Later, when money became difficult, I started seeing it differently,” he said.
He said there were periods when he won enough to cover some immediate expenses.
“There were times the money helped me with transport and food. But there were also times I lost what I had planned to use for something else.”
His experience reflects the danger of treating an uncertain activity as a regular source of income.
The attraction of digital loans is partly explained by convenience.
Unlike conventional bank borrowing, many digital lenders allow customers to apply through their phones, undergo automated verification and receive decisions quickly.
Technology experts have also pointed to the expansion of BVN and NIN verification, mobile-money infrastructure, cloud computing and digital credit-scoring systems as factors that have lowered the barriers to obtaining small loans.
But convenience can also encourage repeated borrowing.
A borrower who takes money from one lender may subsequently turn to another when repayment becomes due. In some cases, the borrower may have obligations with several lenders without any single lender having a complete picture of the person’s total indebtedness.
A ₦100,000 loan can also carry a substantial repayment obligation depending on the lender, duration and borrower’s risk profile. Reported examples include a representative ₦100,000 three-month loan attracting ₦30,000 in interest, while some digital lenders advertise considerably different annualised rates depending on the customer’s circumstances.
Financial experts have warned that the biggest danger is not necessarily taking one emergency loan but becoming dependent on repeated borrowing.
The cycle can be straightforward: salary falls short, a borrower takes a loan, the money is spent on urgent needs, repayment arrives before the next salary, another loan is taken and the process repeats.
The experiences of Nigerians using both platforms reveal a deeper problem: when wages and business earnings fail to keep pace with the cost of living, people begin looking for increasingly risky ways to close the gap.
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