A Nigerian man has taken to social media to express shock after discovering that an ₦80,000 loan he took two years ago had grown into a staggering ₦1.4 million debt.
His plight was shared by Barrister Atanda Olatunji via his Facebook platform, The People’s Parliament. The debtor, who redownloaded the loan app after two years, was stunned to see how much his debt had accumulated and sought urgent advice.
His message read:
“I redownloaded my loan app today and was surprised by what I saw. Atanda, a loan of ₦80,000 from two years ago is now ₦1.4 million. What can I do, please?”
Legal Advice and Implications
Responding to the man’s predicament, Barrister Atanda warned that the debt would not stop increasing and could severely damage his credit score, potentially barring him from accessing loans and other financial opportunities in the future.
He advised the debtor to visit the loan company’s office and negotiate a reduction, stating that most lenders may be willing to cut the debt by 50% if approached in good faith.
“My dear, you need to sort it out now because it will not stop increasing, and it will badly affect your credit score. You will lose many opportunities in the future. Go to their office, plead for a fair settlement, and promise to start paying. They might reduce it by 50% for you. However, they also have the right to accept or reject your plea.”
The barrister also warned that if the debt crosses ₦3 million, the lending company could file a lawsuit against the debtor, potentially leading to asset seizure.
“The longer you delay, the more it piles up. One day, you might check and see ₦10 million as your debt. Once it crosses ₦3 million, the company will take legal action against you. By then, you will be in court frequently and risk losing property worth that amount. Ignorance of the law is no excuse.”
The Only Way Out?
Barrister Atanda bluntly told the man that paying the loan was the only realistic option unless he planned to flee Nigeria permanently.
“Pay your loan. Don’t think deleting the app will make the debt disappear. The only way to escape it completely is to leave the country and start life afresh elsewhere.”
The case highlights the dangers of unregulated digital loans and compounding interest rates, with many Nigerians falling into similar debt traps due to economic hardship. Experts advise borrowers to read loan terms carefully and avoid unrealistic repayment plans that could spiral out of control.