Loan apps promise quick cash in minutes, but many Nigerians end up borrowing from one app to repay another, with fees piling up and, in the worst cases, harassment of their contacts. If that is where you are, you are not alone and you are not powerless. Since 2025, Nigeria has specific regulations for digital lenders, including rules against harassment. This guide gives you a step-by-step plan to stop the cycle, deal with lenders, protect your rights and rebuild.
Step 1: Stop borrowing new loans
The single most important step is to stop taking new loans to repay old ones. Each new loan adds fees and shortens the time until the next repayment. Delete the apps you have not borrowed from, and do not accept “pre-approved” offers. Under the Federal Competition and Consumer Protection Commission (FCCPC)’s 2025 regulations, pre-authorised or automatic lending is prohibited (FCCPC announcement).
Step 2: List every debt
Make a table with every loan you owe, including apps, salary advances, friends and family:
| Lender | Amount owed now | Due date | Fees or interest | Registered with FCCPC? |
|---|---|---|---|---|
| App A | (fill in) | (fill in) | (fill in) | Yes / No / Unsure |
| App B | (fill in) | (fill in) | (fill in) | Yes / No / Unsure |
Seeing the full picture is painful but necessary. Many people find the total is lower than they feared once it is written down; others realise it is larger and need a longer plan. Either way, you now have a target.
Step 3: Know your rights under the 2025 regulations
The Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025 (often called the DEON Regulations) came into effect on 21 July 2025, according to the FCCPC. Among other things, the FCCPC says they:
- require digital lenders to register with the Commission;
- require clear and accessible loan terms;
- prohibit pre-authorised or automatic lending;
- set rules for ethical recovery, data privacy and fair interest rates;
- allow sanctions including fines of up to ₦100 million or 1% of turnover and disqualification of directors for up to five years.
Lawyers summarising the regulations note that harassment and shaming of borrowers, such as messaging your contacts or threatening to publish your photos, are prohibited (Veraz Advocates). Owing money does not remove your right to be treated lawfully.
Step 4: Check if each lender is registered
The FCCPC publishes a list of digital lenders it has approved. Check each app against the current list on the FCCPC website. If a lender is unregistered, it is operating outside the framework, and you can report it. You still owe money you borrowed, but you should not tolerate abusive recovery.
Step 5: Choose a repayment order
Two common methods:
- Avalanche: pay minimums on everything, then put every extra naira toward the loan with the highest cost. This saves the most money.
- Snowball: pay minimums on everything, then clear the smallest balance first. Each closed loan gives a quick win and motivation.
With loan apps, the costs are often so high that avalanche makes sense. But if you have many small loans, closing a few quickly with snowball can reduce the number of lenders chasing you.
Step 6: Talk to lenders before due dates
Contact each lender through its official channel, in writing, before you miss a payment. Explain that you want to pay and propose a realistic plan: “I can pay ₦15,000 on the 28th of this month and ₦15,000 on the 28th of next month.” Ask whether they will freeze further fees. Keep screenshots of every message. Many lenders prefer a plan to a default.
Step 7: Find money for repayment
- Cut back hard for a short period. Pause subscriptions, eat at home, reduce data spending. Our 50/30/20 guide shows how to redirect a savings bucket to debt.
- Sell unused items such as old phones or gadgets.
- Use windfalls: 13th month, bonus or refunds. See our 13th month guide.
- Earn extra: see our side hustles guide.
- Consider one cheaper, regulated loan from your bank, employer or cooperative to clear the expensive apps, only if the total cost is clearly lower and you stop using the apps entirely.
Step 8: If you are harassed, report it
The FCCPC’s 2025 guidelines set out a complaint process (DEON Guidelines):
- Complain to the lender first. The lender should take reasonable steps to resolve it within 48 hours, or within 14 days for complex issues, with written notice.
- Escalate to the FCCPC if unresolved, by emailing lenderstaskforce@fccpc.gov.ng with the complaint, the lender’s responses and supporting evidence.
- You can also use the “File a Complaint” form on the FCCPC website.
Gather evidence: screenshots of threats, messages sent to your contacts, call logs, the loan agreement and bank statements showing disbursements and repayments. If your personal data was shared, you may also have a complaint with the Nigeria Data Protection Commission. If you receive threats of violence, report to the police.
Step 9: Protect your phone and data
- Review app permissions and revoke contacts, photos and location access for loan apps.
- Warn close contacts that they may receive messages and should ignore them.
- Change passwords and PINs if you shared them with any app.
Step 10: Rebuild so it doesn’t happen again
Most people turn to loan apps because a small emergency hit with no savings. Once your debts are cleared, keep paying the same amount, but into an emergency fund. Even ₦50,000 set aside can stop the next crisis becoming a loan. Our emergency fund guide compares where to keep it, and the Nigerian Salary Budget Planner includes a debt tracker and savings goals so you can watch balances fall and savings grow.
Look after yourself
Debt stress is real. Talk to someone you trust. Shame keeps people borrowing in secret; telling one person often makes the plan easier to stick to. If debt is affecting your mental health, seek support.
A sample 90-day recovery plan
- Days 1–7: stop new borrowing, list every debt, check lender registration, revoke app permissions.
- Days 8–14: contact each lender in writing with a proposed plan; build a bare-bones budget that frees cash for repayment.
- Days 15–60: pay according to your chosen order; report any harassment with evidence; sell unused items.
- Days 61–90: close remaining small loans; start a small emergency fund with whatever you were paying to the cleared loans.
Write the plan down and tick off each step. Progress you can see is easier to stick to than progress you can only hope for.
Frequently asked questions
Can a loan app legally message my contacts?
The 2025 regulations, as summarised by the FCCPC and lawyers, prohibit harassment and shaming of borrowers. Report it with evidence.
Will I go to jail for owing a loan app?
Owing a debt is generally a civil matter. Threats of arrest used to pressure borrowers are a common abusive tactic. Speak to a lawyer if you receive formal court papers.
Should I stop paying if the app is harassing me?
You still owe what you borrowed. Report the harassment, but keep a repayment plan so the debt does not grow.
How do I know if a loan app is approved?
Check the current list of approved digital lenders on the FCCPC website.
Is borrowing from my bank to clear loan apps a good idea?
It can be, if the total cost is clearly lower and you stop using the apps. Read the full terms first.
This guide is general information based on the sources linked above and is not legal or financial advice. For legal disputes, consult a lawyer.
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