Both are among the most popular low-risk investment options in Nigeria, but they serve different purposes. This article breaks down the mutual fund vs treasury bill debate: comparing returns, liquidity, and safety: to help you decide where best to put your money.

Understanding Mutual Funds in Nigeria

What is a Mutual Fund?

A mutual fund is simply a pool of money collected from many investors and managed by professionals who invest it in assets like stocks, bonds, or money market instruments. Think of it as a cooperative investment system: you contribute your share, and fund managers handle the hard part.

How Mutual Funds Work

When you invest in a mutual fund, your money is combined with others’ funds and managed by an expert. Depending on the type of fund, your returns could come from interest, dividends, or capital appreciation (when the value of assets increases).

Types of Mutual Funds in Nigeria

There are different kinds of mutual funds to suit every investor’s goal:

• Money Market Funds: For short-term, low-risk investors.

• Equity Funds: Invest mainly in stocks: higher risk, higher returns.

• Bond Funds: Focus on fixed-income securities.

• Balanced Funds: A mix of all for moderate growth and stability.

Average Returns and Growth Potential

Returns on mutual funds in Nigeria vary. Money Market Funds usually yield around 10–16% per annum, while Equity Funds can generate up to 20–30% depending on market performance. The growth potential is higher than treasury bills: but so is the risk.

Pros and Cons of Mutual Funds

Advantages:

• Professionally managed by experts.
• Diversified portfolio reduces risk.
• Accessible through mobile apps and fintechs (e.g., ARM, Stanbic IBTC, Cowrywise).

Disadvantages:

• Returns are not guaranteed.
• Some funds charge management fees.
• Market fluctuations can affect performance.

Understanding Treasury Bills in Nigeria

What Are Treasury Bills (T-Bills)?

Treasury bills are short-term debt instruments issued by the Central Bank of Nigeria (CBN) to borrow money from the public. In simple terms, you’re lending money to the government, and they pay you back with interest after a set period.

How Treasury Bills Work

You buy a treasury bill at a discounted rate: for instance, you might pay ₦900,000 for a ₦1,000,000 T-bill; and at maturity (say 364 days), you receive the full ₦1,000,000. The ₦100,000 difference is your interest or profit.

Typical Returns on Treasury Bills

Returns on treasury bills in Nigeria typically range between 10% and 18% per annum, depending on the tenor (91, 182, or 364 days) and market demand. Though returns are fixed, they are often lower than inflation.

Why Treasury Bills Are Considered Safe

Treasury bills are backed by the Nigerian government, making them one of the safest investment options in Nigeria. They are ideal for conservative investors who prefer stability over high risk.

Pros and Cons of Treasury Bills

Advantages:

• Government-backed and very safe.
• Predictable fixed returns.
• Suitable for short-term investment goals.

Disadvantages:

• Returns may not beat inflation.
• Funds are locked until maturity.
• Minimum investment can be high (₦100,000 or more).

Mutual Fund vs Treasury Bill: Key Comparison Table

Which Is Better for You?

The answer depends on your financial goal and risk appetite.

Choose Treasury Bills if You Want Safety and Stability

If your goal is to protect your capital and earn predictable income with minimal risk, then treasury bills are ideal. They are perfect for:

• Retirees.
• Salary earners saving for short-term needs.
• Investors who cannot tolerate risk.

Choose Mutual Funds if You Want Growth and Higher Returns

If you’re young or willing to take a bit of risk for potentially higher gains, mutual funds are a better choice. They allow your money to grow faster, especially when inflation is high.

The Smart Move: Combine Both

Many smart investors in Nigeria now take a balanced approach; putting part of their money in treasury bills for safety and another part in mutual funds for growth. This way, you get stability and good returns at the same time.

Real-Life Example:

Aisha’s Investment Story

Aisha, a 30-year-old banker, invested ₦500,000; half in a money market mutual fund and half in treasury bills.

• After one year, her treasury bill returned about ₦45,000 profit.

• Her mutual fund earned around ₦60,000, though the value fluctuated a bit.

By diversifying, she enjoyed steady income and better overall returns; proving that balance often wins.

How to Start Investing in Either Option

How to Buy Treasury Bills in Nigeria

• Through commercial banks (like GTBank, Zenith, Access).
• Via the Central Bank of Nigeria’s auctions.
• Through digital investment platforms like Cowrywise, Trove, etc.

How to Invest in Mutual Funds

• Open an account with licensed fund managers like ARM, Stanbic IBTC, Afrinvest, or Meristem.
• You can also use investment apps that let you start with as little as ₦1,000 to ₦5,000.

Quick Tips for Beginners

• Understand your risk tolerance.
• Always check fund performance before investing.
• Be patient because growth takes time.

Expert Insight: What Financial Advisors Recommend

Most financial experts suggest having a diversified investment portfolio. That means:

• 30% to 40% in risk-free assets like Treasury Bills.
• 60% to 70% in growth instruments like Mutual Funds or Bonds.

What this balance doe exactly is helps you stay safe while still growing your wealth faster than inflation. Let’s look at some of the common mistakes to avoid.

Common Mistakes to Avoid

• Investing blindly without understanding how returns work.
• Ignoring inflation when calculating real profits.
• Overlooking management fees on mutual funds.
• Withdrawing too early from mutual funds and missing compounding benefits.

Final Thoughts

There’s no one-size-fits-all investment strategy. The best choice depends on your financial goal, timeline, and risk appetite.

If you value stability and guaranteed income, treasury bills are your friend. If you want growth and better long-term returns, mutual funds will serve you well.

But the smartest approach?… is to simply: Combine both.

That way, your money stays safe and still grows steadily; giving you peace of mind in Nigeria’s unpredictable economy.

NOTE: The best investment is not the one that pays the most, but the one that helps you sleep well at night while your money works for you.

The post Mutual Funds vs. Treasury Bills in Nigeria: Where Should You Put Your Money? appeared first on AFRICA EXPLAINED.

There is a reason why thousands are turning to two powerful alternatives: Money Market Funds and Mutual Funds. While both offer a huge step up from the bank, they are built for different financial missions. The key is knowing which one aligns with your goals.

This guide gives you the clear, practical breakdown you need to decide where your money truly belongs.

What is a Money Market Fund?

A Money Market Fund is a type of mutual fund that invests primarily in short-term, low-risk financial instruments such as Treasury Bills, Commercial Papers, and Certificates of Deposit.

In Nigeria, these funds are managed by investment firms and regulated by the Securities and Exchange Commission (SEC). Top fund managers like Stanbic IBTC, ARM, FBNQuest, and Chapel Hill Denham offer well-established Money Market Funds with accessible entry points; often starting as low as ₦5,000.

Key Features:

• Low Risk: Because they invest in short-term instruments backed by the government or reputable institutions, the risk of losing your capital is minimal.

• Liquidity: You can easily withdraw your money at short notice, making it perfect for emergency savings or short-term goals.

• Steady Returns: Money Market Funds offer returns that are higher than traditional savings accounts but lower than high-risk investments.

Example:
If you had ₦500,000 sitting in a traditional bank account for instance and it’s earning 2% per year, moving it into a Money Market Fund could easily earn you 10% to14% annually (depending on the fund manager and market conditions sha!).

Best for:
Investors seeking safe, low-risk investments with quick access to cash; such as salary earners, retirees, or small business owners.

What is a Mutual Fund?

A Mutual Fund, on the other hand, is a pooled investment vehicle that combines money from multiple investors to buy a diversified mix of assets; such as stocks, bonds, real estate, or other securities.

Unlike Money Market Funds, mutual funds can vary widely in risk and return depending on their focus. Some funds invest in equities (stocks), others in fixed income (bonds), and some combine both. Read more about mutual funds here.

Types of Mutual Funds in Nigeria:

• Equity Funds: Invest mostly in company stocks; higher risk, higher potential returns.

• Balanced Funds: Combine stocks and bonds to balance growth and stability.

• Bond Funds: Focus on government and corporate bonds for steady income.

Expected Returns:
Returns on mutual funds depend on market performance, but in Nigeria, equity or balanced funds can deliver 15% to 30% returns annually during strong market conditions; though they may also experience temporary dips.

Best for:
Long-term investors looking to build wealth, such as those saving for retirement, property, or future education expenses.

Key Differences Between Money Market Funds and Mutual Funds

Here’s a clear comparison to help you decide at a glance:

Both investments are great options; but they serve different purposes. Think of a Money Market Fund as your short-term safety net, and a Mutual Fund as your long-term growth partner.

Which One is Best for You?

Choosing between a money market fund and a mutual fund depends on your goals, your risk appetite, and your investment timeline. What do I mean?… Continue reading for clearer picture.

If You Value Safety and Quick Access:

Go for a Money Market Fund. WHY?
It’s ideal for:

• Emergency funds
• Saving for short-term goals
• Protecting your capital while earning decent returns

BUT…

If You Want Higher Returns and Can Handle Some Risk:

Choose a Mutual Fund. WHY?
It’s perfect for:

• Long-term wealth creation
• Beating inflation
• Investors willing to ride market ups and downs

As a Beginner Do This:

So, if you’re Just Starting Out: You can begin with a Money Market Fund and later diversify into Mutual Funds as your confidence and understanding grow.

WORTH NOTING: Many Nigerians use Money Market Funds as a “stepping stone” into the world of investments. Once comfortable, they expand into Mutual Funds or even direct stock investments.

Top Performing Funds in Nigeria

NOTE: Past performance is not a guarantee of future results. Always review the fund’s historical data, fees, and performance reports before investing. Below are few known reputable fund managers offering both Money Market and Mutual Funds here in Nigeria:

• Stanbic IBTC Asset Management Ltd. (Stanbic IBTC Money Market Fund): Known for stability and competitive yields.
• ARM Money Market Fund: Offers flexibility and reliable returns.
• FBN Smart Beta Equity Fund: Great for long-term investors looking for growth potential.
• Chapel Hill Denham Nigeria Bond Fund: Ideal for moderate risk investors seeking fixed-income exposure.

Pros and Cons Summary

Let’s see some of the pros and cons involve in the two.

Money Market Fund

Pros:

• Low risk and capital protection
• Steady income
• Easy access to funds

Cons:

• Lower returns compared to equities
• May not outpace inflation in the long term

Mutual Fund

Pros:

• Higher growth potential
• Diversification reduces overall risk
• Suitable for long-term goals

Cons:

• Returns fluctuate with market performance
• May require longer commitment to see gains

Tips for Nigerian Investors

Choosing the right fund is only half the battle. To truly grow your wealth and avoid common pitfalls, a smart approach is key. Here’s what every successful Nigerian investor needs to know.

1. Know Your Risk Appetite: Don’t invest blindly. Decide whether you prefer steady returns or long-term growth.

2. Check SEC Registration: Only invest in funds registered with the Securities and Exchange Commission (SEC).

3. Compare Fees and Performance: Management fees can eat into returns; choose funds with a strong track record and reasonable charges.

4. Reinvest Dividends: Let your earnings compound for faster growth.

5. Diversify: Mix both money market and mutual funds for balance between safety and performance.

Final Thoughts: Finding the Right Investment Fit

There’s no universal “best investment in Nigeria.” The right choice depends on your financial goals, time horizon, and risk comfort.

If your goal is preserving capital while earning better returns than a savings account, a Money Market Fund is your go-to.
But if you’re aiming for wealth creation and long-term growth, a Mutual Fund can offer that extra edge; with some patience and risk tolerance.

At the end of the day, the smartest investors in Nigeria aren’t those chasing quick profits, but those who invest consistently, diversify wisely, and stay informed.

The post Money Market Fund vs. Mutual Fund in Nigeria: Which One is Best for You? appeared first on AFRICA EXPLAINED.

If you are like me, who is constantly looking for a smart and stress-free way to grow my money? Investing in mutual funds in Nigeria is one of the safest and most effective ways to build wealth without the need for deep financial expertise. With professional fund managers handling your investments, you can sit back and watch your money work for you.

In this guide, we’ll break down everything you need to know about mutual funds, from how they work to how you can start investing today. Plus, we’ll share real-life examples of Nigerians who have successfully built wealth through mutual funds.

What Are Mutual Funds? (A Simple Explanation)

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. Instead of investing directly in stocks or real estate, mutual funds allow you to invest with little capital while benefiting from expert management.

Types of Mutual Funds in Nigeria

1. Money Market Funds – Low-risk funds that invest in short-term securities like Treasury Bills (T-Bills). Ideal for beginners.
2. Equity Funds – Invest in stocks and offer higher returns but with more risk.
3. Fixed Income Funds – Invest in government and corporate bonds. Suitable for risk-averse investors.
4. Balanced Funds – A mix of stocks and bonds for moderate risk and returns.

Example:

Jane, a Lagos-based teacher, started investing in a money market mutual fund with just ₦50,000. Within a year, she had earned 10% returns, outperforming her savings account.

Why Should You Invest in Mutual Funds?

1. Low Risk and Diversification – Your money is spread across different investments, reducing risks.
2. Affordable Entry – Start with as low as ₦5,000.
3. Professional Management – Experts handle your investment decisions.
4. Passive Income Generation – Earn returns without active involvement.
5. Liquidity – Easily withdraw your funds when needed.

Example:

David, an entrepreneur, started investing ₦100,000 in a fixed-income fund. Over three years, his investment grew by ₦50,000, helping him save for a car.

How to Start Investing in Mutual Funds in Nigeria (Step-by-Step Guide)

Step 1: Define Your Investment Goals

• Are you saving for a house, education, or retirement?
• How long can you keep your money invested?

Step 2: Choose the Right Mutual Fund Type

• Short-term goals? Go for Money Market Funds.
• Long-term growth? Choose Equity or Balanced Funds.
• Low-risk preference? Fixed Income Funds are best.

Step 3: Research and Compare Mutual Funds

• Look at past performance, fees, and risk levels.
• Use trusted sources like the SEC Nigeria website or fund providers’ reports.

Step 4: Open an Investment Account

• Where to invest: Banks (Stanbic IBTC, FBNQuest), Investment Firms (ARM, Meristem), Online Apps (Cowrywise, PiggyVest).
• Registration requires basic details and BVN.

Step 5: Fund Your Investment

• Start small and increase over time.
• Automate investments for consistency.

Step 6: Monitor and Adjust Your Portfolio

• Check returns regularly.
• Consider switching funds based on market trends.

Best Mutual Funds in Nigeria for Beginners

Example:

A student, Tunde, invested ₦20,000 in Stanbic IBTC Money Market Fund. After six months, he earned ₦1,600 in interest, more than what a bank savings account would offer.

Common Mistakes to Avoid When Investing in Mutual Funds

1. Not Setting a Clear Goal – Invest with a purpose in mind.
2. Ignoring Fund Fees – High management fees can reduce profits.
3. Withdrawing Too Early – Give your investment time to grow.
4. Investing in High-Risk Funds Without Research – Understand the risk before choosing a fund.

Example:

Emeka invested in an equity mutual fund without researching. When the market dropped, he panicked and withdrew at a loss instead of waiting for recovery.

Frequently Asked Questions (FAQs) About Mutual Funds in Nigeria

1. How much do I need to start investing?

• As low as ₦5,000, depending on the fund provider.

2. Can I lose money in a mutual fund?

• Yes, but risk depends on the fund type. Money Market Funds are the safest.

3. How do I withdraw my money from a mutual fund?

• Withdrawals can be made through your investment platform, usually within 24-48 hours.

4. Are mutual funds better than fixed deposits?

• Yes, mutual funds generally offer higher returns than fixed deposits.

Real-Life Example: How One Nigerian Built a ₦1 Billion Investment Portfolio

A real-life success story showcases how a Nigerian woman, a former accountant, built a diversified investment portfolio worth over ₦1 billion and retired comfortably at 53.

Her strategy involved consistent saving and strategic investments in real estate, government bonds, fixed deposits, and foreign exchange instruments.

She started by saving 40% of her income, gradually expanding her portfolio to include rental properties, stocks, and pension contributions.

By prioritizing long-term financial security and diversifying her assets, she created multiple income streams, including a ₦500,000 monthly pension.

Her key takeaways?

• Start early,
• invest consistently, and
• diversify your assets to secure a stable financial future.

That story wasn’t made-up; you can read the full story on Zikoko website here

Conclusion and Final Tips

Mutual funds are an excellent way for Nigerians to build wealth with minimal risk and effort. Whether you are a student, entrepreneur, or salary earner, you can start small and grow your investment over time.

Final Tips:

• Start with a Money Market Fund if you are a beginner.
• Be consistent and reinvest your earnings.
• Stay patient—investing is a long-term game.
• Follow and take advice from knowledgeable individuals in the finance field.
  • List of Individuals to follow [NOTE: You can’t go wrong with these people’s advice.]
    • FOLLOW Mr. Skolex onX (Formarly TWITTER)
    • FinGrip
    • Doyin TOYE | Subscribe to her YouTube Channel here

Ready to start investing? Research top mutual funds and take the first step toward financial freedom today!

The post Beginner’s Guide to Investing in Mutual Funds in Nigeria (With Real Examples) appeared first on AFRICA EXPLAINED.

KoboGo Loan App Overview

Kobogo is one of Nigeria’s daily used loan apps, recognized and registered with the FCCP (Federal Competition & Consumer Protection Commission), but not licensed by the CBN. It has over 500,000 downloads and counting on Google Play Store. This is a personal review, meaning that it’s based on research and personal use of the writer.

How to Apply for KoboGo Loan?

1. Download the app from the Play Store (not available for iOS users)
2. Register using a valid phone number.
3. Submit BVN
4. Apply for loan

You will be asked to confirm the loan amount you are applying for by signing a contract (just a confirmation, not one long contract, so don’t be afraid):

Below was the contract based on my last loan with KoboGo before writing this review:

The main points of the contract
Account number: ******386

Name of the bank: Bank

Amount: NGN 11000

Term of the discount period: 30 days

Frequency of interest payments – every 30 days

Discount interest rate: 1.36%

Standard interest rate: 3.10%

The total cost of the loan and interest at the end of the discount period is as follows: NGN 15488

KoboGo Loan App Requirements

Based on personal experience, the only thing Kobogo will request is your BVN (this is based on the last time we checked, which was November 2024). Meaning, for you to apply for a loan with Kobogo, you need to provide a BVN (bank verification number), first and last name, and phone number. No additional documents or data will be required.

So, below are the documents/details needed before applying for KoboGo loan:

1. BVN (Bank Verification Number)
2. Personal Details: Phone Number, First and Last Name, Address, Email, DOB.

Advantages of Taking KoboGo Loan (PROS)

Since I initially said it’s based on personal experience, so below are the good side of taking a loan (especially short-term loans) from KoboGo:

Instant Loans

KoboGo gives instant loans, that is, you get the money (loan) instantly to your added bank account once you’ve registered and submitted all necessary details/documents.

Security/Duly Registered

The KoboGo loan app is secured and the business itself is registered with CAC and also registered with FCCP.

Repayment

You can pay your loans in installments. (Which I won’t advice you to do, pay the loan at once to avoid high interest)

Promotions and Discounts

KoboGo gives you the opportunity to reduce your loan interest by sending you a promo code via text (especially if you have taken loan from them once or twice). The promo code will be used as you can see in the image below to reduce the interest you will pay.

Disadvantages of taking KoboGo Loan (CONS)

Also, based on my personal experience, the only thing I see about KoboGo loan app is there interest on the loans.

High Interest Rate

A 35% interest rate is exorbitant, far exceeding industry standards for even short-term loans. Such excessive rates can quickly trap borrowers in a cycle of debt, making timely repayments difficult. Late fees and penalties further exacerbate the issue, potentially leading to a debt spiral. Long-term financial consequences include strained budgets, reduced disposable income, and limited opportunities for savings and investment.

APR (Annual Percentage Rate) For KoboGo Loan (KoboGo Loan Interest Explained)

Annual percentage rate (APR) is the yearly cost of borrowing money, expressed as a percentage.

So, for better explanation on the interest to be paid (which I earlier said you can reduce with a promo code if KoboGo sent a promo code via text):

Interest rate from 0.017% to 3.70% per day

Actual annual interest rate, percentage per annum from 36.5% to 1095%

Maximum loan amount from 5,000 naira to 100,000 naira

Borrower’s age from 20 to 60 years

Amount of the first loan from 5000 naira to 100000 naira

Loan term from 1 to 90 days

Application consideration up to 5 minutes

Requirements BVN, Nigerian citizenship

How to use the loan. Order of repayment.
The loan agreement term is 90 days. During this term, the maximum interest rate on the loan is 3.70% per day.

In the calculator of the personal account, the borrower chooses a Grace Period. The Grace Period can last from 1 to 30 days from the date of loan issuance, at the borrower’s choice.

During the Grace Period, the loan rate will be from 0.01% per day to a maximum of 1.7% per day (may be less for repeat borrowers or in case of a change in the borrower’s risk level, or when using a promo code).

After the end of the Grace Period, the borrower can either pay off the loan in full or, in the absence of funds, extend its term, paying the interest accrued to date.

In this case, the Grace Period will be extended for the term chosen by the borrower in the personal account. The borrower can extend the Grace Period an unlimited number of times.

Thus, each time when the Grace Period ends, the client pays the accrued Grace Period interest and uses the loan funds at the preferential rate.

If the borrower paid the interest for the use of the Loan e within the term of the previous Grace Period, the client in the personal account chooses the next Grace Period, in the meaning from 1 to 30 days.

If even after this term the payment is not received, the Grace Period will end and every subsequent day, until the end of the loan term, interest will be calculated at the Standard rate of 3.70% per day.

The company will definitely remind the borrower that the term of the Grace Period is coming to an end.

After the end of the loan term, as well as after the end of quarantine restrictions, penalties may be charged according to the terms of the contract.

Loan calculation example:

Commissions, additional and accompanying services and loan payments – none

Situation #1

(payment made during the Grace Period up to 30 days)
Loan received on August 1st.

A 30-day Grace Period has been chosen in the loan calculator.

Loan amount – 20000 naira.

Interest rate during the Grace Period – 1.7%.

The loan is fully repaid after 10 days, that is, on August 11th.

Total amount to be paid 20000 naira loan + (20000 * 1.7/100 * 10) = 23400 naira.

Where:

3400 naira accrued interest for 10 days;
20000 loan amount;
The total cost of the loan is 23400 naira.

Situation #2

(choosing a new Grace Period, extended term)
The loan was obtained on August 1.

A Grace Period of 30 days was chosen in the loan calculator.

Loan amount – 20000 naira.

Interest rate during the Grace Period – 1.7%.

On August 31, the borrower didn’t have the full amount to close the loan, so he only paid the interest accrued to date, 20000 * 1.7/100 * 30 days = 10200 naira.

A new Grace Period was chosen (extended) for 15 days, that is, until September 15.

On September 15, the loan was fully repaid. The borrower paid 5100 naira of interest of the new Grace Period and 20000 naira of the loan principal. A total of 25100 naira was paid.

Situation #3

(interest for the Grace Period of the loan, the loan principal is not paid within 30 days, and the loan is repaid on the 65th day)
The loan was obtained on August 1.

A Grace Period of 30 days was chosen in the loan calculator.

Loan amount – 20000 naira.

Interest rate during the Grace Period – 1.7%.

The standard rate is 3.70%.

On August 31 (end of the Grace Period) the borrower didn’t make any payments.

The repayment took place on September 20.

The total amount to be repaid is 20,000 naira of the loan + (20,000 * 1.7/100 * 30) + (20,000 * 3.70/100 * 35) = 56100 naira.

Where:

10,200 naira is the accrued interest of the Grace Period for 30 days;
25,900 naira is the accrued interest of the Standard Period for 35 days;
20,000 naira is the loan amount.
The total loan cost will be 56,100 naira.

KoboGo License details:

• License name: Money Lender’s License
• State agency: Lagos State Government Ministry of Home Affairs
• Full name of the company: KoboGo Nigeria Limited
• Date of issue: 27/05/2023
• Identification code: 101233
• Legal address: 48, Awolowo Road, Ikoyi, Lagos State

KoboGo Loan Customer Service Number

• Email: info@kobogo.ng
• Phone: +234 170 024 64, +234 170 024 65, +234 20170 024 64, +234 20170 024 65

General Questions about KoboGo (FAQ)

How much can I borrow and for how long?

KoboGo offers loans from loans of up to 100 000₦ for a period of up to 30 days. The better your lending history and positive behavior, the more you can access and the longer the period!

Do I need to submit any document?

No. To get a KoboGo loan, you do not need to submit any document. We will only need you to provide phone number linked to your BVN, accurate answer a few questions and confirm your identity.

*NOTE: Please ensure you provide accurate answers on the required fields. You would be barred from accessing KoboGo loans if any detail is falsified.

How did I return the loan?

You can return the money using a bank card through your personal account. You can pay in part or in full, the main thing is to settle the debt before the contract expires.!

How can I get an instant loan?

You need an Android phone and a BVN. That’s all! Download the KoboGo app from the Google Play. Sign up with the phone number linked to your BVN, answer a few questions and confirm your identity to receive a loan offer. If you accept it, you will receive your loan instantly!

Do I need documents or a collateral?

No document, no collateral! You will only need to share your BVN details during the loan application and connect your card or bank account to authorize us to debit your account for the repayment.

Why KoboGo?

KoboGo is a payday loan service. We make it easy for you to apply for a loan and receive your loan to your card in minutes 24/7.

So, Is KoboGo Loan App Legit?

Yes, KoboGo Loan App is a legitimate loan app in Nigeria. However, based on my personal review it’s crucial to understand that it’s most suitable for individuals seeking short-term financial relief. The high-interest rates associated with these loans make them less ideal for long-term borrowing. It’s essential to borrow responsibly and only use the app when necessary, ensuring you can repay the loan on time to avoid additional fees and penalties.

KoboGo Loan App: Important Information for Borrowers

This document outlines key details about KoboGo Loan App, including its registration status, consumer rights protection mechanisms, and potential fraud concerns.

1. State Registration of a Financial Institution

KoboGo is operated by KOBOGO NIGERIA LIMITED, a legitimate company registered under number 2020625 and headquartered at 48 Awolowo Road, Ikoyi, Lagos State, Nigeria.

2. Mechanism for Consumer Rights Protection and Dispute Resolution

KoboGo takes consumer rights seriously and offers various avenues for raising concerns and resolving disputes:

• Email: If you believe your consumer rights have been violated, please send a detailed email with the subject line “Complaint” to [email address removed]. The company aims to respond to email complaints within 7 business days.
• Government Bodies: If the issue cannot be resolved through email communication, you have the right to contact government agencies responsible for protecting financial service consumers.
• Legal Action: As a last resort, you have the right to pursue legal action if an out-of-court solution cannot be reached.

3. Potential Fraud and Data Protection

KoboGo prioritizes data security and urges users to be vigilant against potential fraud:

• Do not share: Never share your phone, SIM card, login credentials, passport, ID, Taxpayer Identification Number, or bank card details with anyone.
• Report suspicious activity: If you suspect unauthorized access to your information or fraudulent loan activity, immediately report the incident to [email address removed].

By understanding these points, you can make informed decisions about using the KoboGo Loan App and safeguard your financial security.

Conclusion

What KoboGo loan app does is that it provides a convenient option for quick, short-term loans to those who need quick financial needs without the hassle of extensive documentation. So, there you have it, KoboGo loan review. Ensure to pay your loan back to avoid stories and unnecessary calls.

The post Kobogo Loan App: 2025 Review appeared first on AFRICA EXPLAINED.

Many Nigerians face challenges when it comes to international transactions. But fear not! You’re not alone.

Whether you’re a student, a business owner, or simply an individual looking to make international payments, this post will guide you.

Let’s get started.

Ways To Pay USD in Nigeria

Depending on the product or services (this is very important) you are paying for, below are proven ways you can easily pay in USD from the comfort of your room.

1. Virtual Cards

Virtual cards look like your physical credit and debit cards with a 16-digit card number, expiry date, and CVV code. 

Grey, Geegpay, Chipper Cash, ALAT by Wema, Bitnob, Eversend, Changera, Fundall, Payday, Barter by Flutterwave, Gomoney, PSTNET, Bitsika, Cardtonic, Klasha, Kuda bank card, etc.

NOTE: Those are popular virtual cards that Nigerians ‘used’ or are ‘still using’ to pay for international payments (USD, GBP, etc.), and some in one time or another worked but stopped working due to policy changes in Nigeria.

However, there’s a virtual card you can use, which I’ve personally used multiple times recently and can vouch for. (NOTE: This is NOT a paid post or advertisement, just a personal review.)

It is called Africard (formerly called Social Cash)

Africard-Banking Africa by TecheraX

They (Africard) are the Mastercard/Visa Card Issuer for Africa. Offering global payments with virtual and physical cards, uniting Africa with seamless financial solutions.

Make payments in USD, NGN, GBP, and EUR with virtual cards. Convert, transfer, and spend globally from Africa. (According to their Playstore’s Description)

Types of Virtual Cards by Africard

• Black Card

You can use their BLACK CARD on crypto platforms, wise, Stripe, PayPal Neteller, Skrill, Aliexpress, Alibaba, Facebook, X (formerly Twitter), Digital Ocean, AWS, Google, Namecheap, Buymecoffee.com (I used last on this particular website), and many more other international platforms.

• Classic Dollar Card

The Classic dollar card allows you to make international payments on a wide range of platforms, including Aliexpress, Alibaba, ASOS, Facebook, DigitalOcean, AWS, Google, Namecheap, and many others.

NOTE:

1. Ensure to calculate the total money you want to pay properly before adding money to your virtual card because you will pay a service charge (small fee though) for every Dollar Wallet Credited (to your virtual Card). (Example: Don’t you think you are paying for a 5,000 naira product and you added only 5,000 naira then you will need to add extra because that service will be paid on the 5,000 naira, making it not to be 5,000 naira again.)
2. You will pay a service charge for every payment made on your virtual card. So, if you need to make a payment of like 200 USD, ensure you have over 200 USD on the card (maybe 210 USD) to avoid failed payment.

If there is other virtual card(s) you have also used of recent, kindly chare them in the commmet section.

Let’s move on to the second Proven Ways To Pay USD in Nigeria

2. Cryptocurrency

Yes, you can use any cryptocurrency of your choice to pay (as long as it’s accepted by the platform). That was why I said earlier that “depending on the product or service.”

Platforms That Accept Cryptocurrencies From Nigerians

There are platforms that accept cryptocurrencies from Nigerians. Platforms like Namecheap Inc., where you can purchase domains, hosting, VPNs, etc., accept Bitcoin payments through BitPay and BTCPay.

Bitcoin is a peer to peer decentralized currency that enables instant payments to anyone located anywhere in the world. It has no central authority, so managing transactions and issuing money are carried out collectively by the P2P network. For more information on Bitcoin, you can visit Bitcoin.org.

Is crypto allowed in Nigeria?

There is no legislation in Nigeria that expressly bans the usage of cryptocurrencies. So, yes, crypto is allowed in Nigeria. The government lifted its ban on crypto in December 2023. In January 2024, the Nigerian Securities and Exchange Commission (SEC) reversed its earlier harder line stance, prompting the Central Bank to release guidelines for banks opening cryptocurrency accounts.

Popular cryptocurrency exchanges

Apart from using online-based platforms directly, you can purchase goods and ask the seller if he or she accepts crypto. That can be done via many of these crypto platforms, like:

• Bitget
• Bybit
• Kraken
• KuCoin
• Busha, etc.

NOTE: Ensure to be extra careful when sending cash to the seller.

3a. Domiciliary Accounts

Domiciliary Account: A domiciliary account is a type of foreign currency bank account, typically used by individuals or businesses to hold and transact in foreign currencies (such as USD, EUR, GBP). It is common in countries with their own local currency but where customers also need to transact in foreign currencies.

Example: In Nigeria, people may open a domiciliary account to receive and send money in dollars or euros.

Key Purpose: Hold and transact in a foreign currency within your local bank.

3b. Multi-Currency Bank Accounts

Multi-Currency Bank Account: A multi-currency bank account allows you to hold and manage multiple currencies within a single account. Instead of having separate accounts for each currency, all currencies are managed under one account.

It’s useful for international business owners, frequent travelers, or anyone needing to transact in multiple currencies without converting back and forth.

Example: A UK-based freelancer working with clients from the U.S., Europe, and Australia can receive payments in USD, EUR, and AUD under the same account.

Key Purpose: Hold, manage, and switch between multiple currencies within one account.

3c. Remittance Services

Remittance Services: Remittance services refer to the process of sending money, typically by migrants, from one country to another. This is usually done through specific companies or platforms designed for international money transfers (e.g., Western Union, MoneyGram, Ria, WorldRemit, SmallWorld, Wari, etc.).

Example: A parent needs to pay child’s school fees in the U.S. uses a remittance service to send money to his or her child.

Key Purpose: Send money internationally, often person-to-person.

3d. Bank Transfers & International Wire

Bank Transfers & International Wire: Bank transfers (or domestic transfers) refer to transferring money between accounts within the same country. International wire transfers, on the other hand, are bank transfers between accounts in different countries, involving cross-border transfers of funds.
International wire transfers are typically conducted through systems like SWIFT, and may involve higher fees and longer processing times compared to domestic transfers.

Example: A business in Nigeria wires money to a supplier’s bank account in US.

Key Purpose: Transfer money directly between bank accounts, either domestically or internationally.

Summary of Differences:
Domiciliary account: For holding and transacting in a foreign currency in a local bank.
Multi-currency account: For holding and managing multiple currencies in one account.
Remittance services: For sending money abroad, often between individuals.
Bank transfers & international wire: Moving money between bank accounts, with “international wire” specifically referring to cross-border transfers.

4. Gift Cards

One other way to pay USD while in Nigeia is using Giftcards platforms. Platforms like Innixx, Kuda, Cardtonic, GiftCardsToNaira, etc. With Giftcard you can easily pay:

App Store: Google Play, iTunes

Apple Gift Card: Apple

Beauty: BNatural MedSpa, Hairitage Hub, HealthPlus, OneandKo, Oriki, Sephora

Electronics: Best Buy, Currys, Emax, MediaMarkt, Samsung

Fashion: Adidas, American Eagle Outfitters, Ardene, Asos, Banana Republic, Clarks, David Wej, DSW, Forever 21, Gap, H&M, New Look, Nike, Nordstrom, Primark, Swarovski, The5kShop, Twice As Nice, Zalando, Zappos

Film & TV: Filmhouse Cinemas, Hulu Plus, Netflix

Food Delivery: DoorDash, GrubHub, Uber Eats

Gaming: Blizzard Balance, Fortnite, FreeFire, Gamestop, IMVU, Jagex RuneScape, Nintendo, PlayStation, PUBG, Razer Gold, RuneScape, Steam, Xbox, Xbox Live

Home Decor: Adam N Eve, Crate & Barrel, Home Depot, IKEA

Hotels: Hotelgift, Hotels.com

Music: Spotify

Restaurant: Buffalo Wild Wings, Burger King, Casper & Gambini’s, Chipotle, Domino’s, Dunkin’ Donuts, Pizza Hut Restaurants, Red Lobster, Starbucks

Shopping: Amazon, Argos, Carrefour, Grocery Bazaar, Harvey Nicols, Macys, Marks and Spencer, Noon, Ruff n’ Tumble, Sainsburys, Selfridges, Suregifts Generic, T.J. Maxx, TK Maxx, Typo, Ubuy, Walmart

Transport: Uber

NOTE: Before you buy gift cards on Kuda or any other Giftcard platforms available to Nigerians, ensure you read their disclaimer carefully before purchasing.

AliExpress + Opay

Make Payments on AliExpress from Nigeria: One way to do that is to make sure your AliExpress app is up-to-date. After updating you should be able to use your Opay account to pay directly for every goods you buy on AliExpress.

Just click on the Opay option, confirm your password and OTP and viola, payment made.

Sounds untrue, right?

That last one was a bonus anyway, especially for e-commerce business owners.

Thanks for reading. I hope it solves your problem of paying for USD in Nigeria.

The post Top Proven Ways To Pay USD in Nigeria appeared first on AFRICA EXPLAINED.

What exactly is the Nigerian Government Student Loan?

The Student Loan Initiative is a program established by the Federal Government of Nigeria to break financial barriers in higher education through the provision of interest-free loans to students.

With that being said, it is good to know what exactly it is all about before deepening your legs in it. You might start wondering if it is not another PalmPay loan or loan shark. You might even have fear for the Nigerian government (fear of being lied to). All those fears will be sorted out in this guide; just read and share.

What is Nigerian Government Student Loan?

The Nigerian government’s student loan is your key to unlocking your educational dreams. This program provides financial support for public universities, polytechnics, colleges of education, and even technical or vocational training! It covers tuition, fees, and living expenses; all you need to focus on is acing those courses of yours. Go for NYSC and get a better paying job.

Under the newly revised Student Loan Act, the Nigeria Education Loan Fund (NELFUND), a corporate body setup by the Federal Government, will be responsible for the disbursement and management of the student loan (with some other government bodies like the FIRS).

Under the same revised student loan act, you will NOT need to provide two guarantors, which include civil servants with at least 12 years of experience, lawyers with at least 10 years of experience after qualifying, judicial officers, and justices of the peace.

Also, under the same revised student loan act of 2024, family income will no longer be a prerequisite for eligibility for the student loan. 

Below is the full revised Student Loan Act of 2024.

10 Key Points About the Revised 2024 Student Loan Act in Nigeria:

1. NELFUND Established: A dedicated Nigerian Education Loan Fund is created to manage student loans. NELFUND is headed by Mr. Akintunde Sawyerr as Managing Director/CEO, Mr. Frederick Oluwafemi Akinfala as Executive Director, Finance and Administration, and Mr. Mustapha Iyal as Executive Director, Operations
2. Loan Coverage Expanded: Financial support goes beyond tuition to include fees, charges, and living expenses.
3. NELFUND Funding Secured: A dedicated source of funding is established from federal tax collections. The student loan program will be financed by allocating 1% of all taxes, levies, and duties that the Federal Inland Revenue Service (FIRS) collects and that go to the Federal Government, directing these funds to a General Reserve Fund. 
4. Family Income No Longer a Barrier: Students from all income backgrounds can now apply.
5. Guarantor Requirement Removed: There is no need for guarantors to qualify for a loan.
6. Skills Training Included: Funding is available for vocational and technical training programs.
7. Parental Loan History Disregarded: Parents’ loan history won’t affect student eligibility.
8. Repayment Starts After NYSC: Focus on education first, then repayment begins two years after service.
9. Penalties for False Information: Providing false information to secure a loan comes with legal consequences.
10. Debt Forgiveness Clause: Loan forgiveness is possible in cases of death or unforeseen circumstances.

Who can Apply for the Federal Government Student Loan?

• Admitted to a Nigerian university, polytechnic, college of education or vocational school (public only)
• Must not have defaulted on any previous loans or been found guilty of any examination malpractice, felony, or drug offenses.

Who cannot Apply?

Below are people who cannot apply for the Federal Government Student Loan:

• Defaulted on a previous loan
• Found guilty of cheating on a school exam
• Convicted of a felony, dishonesty, fraud, or drug offense
• If your parent(s) defaulted on a student loan

How to Apply

Step 1

Register on the Student Loan Application Platform by clicking the “APPLY NOW” button to get started.

Step 2

Proceed to your student loan application, select either tuition/institutional fee, upkeep or both.

Step 3

Your student loan gets approved and disbursed into your school account in minutes.

To get started:

1. Visit https://slas.omniswift.com/auth/welcome or https://nelf.gov.ng
   Click on ‘Get Started‘
2. Next screen, answer the questions about yourself:
   N.I.N.,
   Date of Birth
   Surname
3. Verify your student status, using:
   JAMB Registration Number or BIMs Registration No. (Beneficiary Identity Management Service)

Keep the below details:

1. A cover letter from your school signed by important officials.
2. Attach required documents:
   • copy of your admission letter
   • Guarantor letters recommending you for the loan and agreeing to repay if you don’t
   • Two passport photos from each guarantor
   • Proof of guarantors’ employment (letter and information)
   • If guarantors are self-employed, provide business registration details

Required Documents

1. A completed application form
2. A copy of your admission letter
3. A copy of your JAMB result slip
4. A copy of your WAEC/NECO result certificate
5. A copy of your birth certificate
6. A copy of your passport photograph
7. A guarantor’s letter of support from each of your two guarantors
8. A copy of your guarantors’ employment letter(s)
9. A copy of your guarantor’s passport photographs

After You Apply

• The approval process is instant if you are eligible, and your details are correct and valid.

Repaying the Loan

• You don’t have to start paying back until two years after finishing your National Youth Service Corps program.
• Payments will be automatically deducted from your salary (10% of your salary).
• If you are self-employed, you will need to send 10% of your monthly profit to the loan program.
• There are penalties for not repaying the loan.

NOTE: After you follow the above process, the final decision lies with NELFUND.

Frequently asked questions about the Federal Government Student Loan in Nigeria

Who is eligible to apply for the student loan?

Eligibility is based on specific criteria, including admission to a recognised institution (have an active academic profile), a valid BVN (Bank Verification Number) and NIN (National Identity Number), and a valid Jamb record.

What documents are required for the application?

You will need your Admission letter and Student ID Card (optional)

How long does the approval process take?

The approval process is instant if you are eligible, and your details are correct and valid.

Can I apply for living expenses in addition to tuition fees?

Yes, you can apply for an upkeep loan in addition to the institutional fee.

When should I start repaying my loan?

Repayment of your loan starts 2 years after your NYSC and will be deducted automatically from your bank account.

Is there a grace period after graduation?

Yes, you have a 2-year grace period after your NYSC.

What is the maximum loan amount a student can receive?

The maximum loan amount is outlined in the Student Loan Act. It is subject to periodic review by the Special Committee.

Can I apply for multiple loans under this initiative?

Eligible students can apply for upkeep and tuition loans but there is only one application for each loan type.

How does the interest-free aspect of the loan work?

Interest-free means that you will not be charged additional fees or interest on the loan amount. You will only repay the principal amount borrowed.

Can I use the loan for expenses other than tuition fees?

Yes, the loan can cover additional expenses such as living costs (upkeep), as specified in the Student Loan Act.

Can parents apply for a loan on behalf of their child?

No, parents cannot. Eligible students must apply for the loan themselves in accordance with the eligibility criteria outlined in the Student Loan Act. However, parents may act as guarantors if required.

Are there any penalties for early repayment of the loan?

No, there are no penalties for early repayment. In fact, early repayment is encouraged as it helps reduce the overall financial burden.

How are loan repayments made?

Repayments are facilitated through salary deductions arranged with employers. The Nigerian Education Loan Fund coordinates with employers to ensure seamless repayments.

How do I become a guarantor for a student applying for a loan?

You can become a guarantor by providing a letter of recommendation and agreeing to accept liability in case the student is unable to repay the loan.

Can a guarantor be changed after the loan has been approved?

In exceptional cases, a guarantor may be changed, but it would require approval from the Nigerian Education Loan Fund and should be communicated promptly.

Can a parent apply as a guarantor for multiple children simultaneously?

Yes, a parent can act as a guarantor for multiple children, provided they meet the criteria outlined in the Student Loan Act.

Can parents receive updates on the loan status and repayment process of their child?

Yes, parents can request updates from the Nigerian Education Loan Fund regarding the loan status and repayment progress of their child.

Can parents serve as guarantors if they are not Nigerian citizens?

The Student Loan Act specifies that guarantors must be Nigerian citizens, so parents who are not Nigerian citizens would not be eligible to serve as guarantors.

Are there any provisions for loan forgiveness in certain cases?

The Student Loan Act outlines specific circumstances under which loan forgiveness may be considered, such as in cases of permanent disability or death.

How is the effectiveness and impact of the initiative assessed and reported to the public?

The Student Loan Act requires the Nigerian Education Loan Fund to provide regular reports and updates on the initiative’s progress.

Can a guarantor withdraw their support after the loan has been approved?

While possible in exceptional cases, it would require careful consideration and adherence to the processes outlined in the Student Loan Act.

What happens if a student changes their course or institution after receiving the loan?

Changes in course or institution must be communicated to the Nigerian Education Loan Fund for evaluation and approval, as outlined in the Student Loan Act.

How is the Student Loan Initiative funded?

The initiative is funded through government allocations, grants, and contributions from various stakeholders, as outlined in the Student Loan Act.

The post Federal Government Student Loan in Nigeria: How to Apply Easily appeared first on AFRICA EXPLAINED.

Tired of watching inflation eat away at your cash? It’s time to put your money to work! This guide explores the top high-interest savings options in Nigeria, helping you choose the best fit for your financial goals.

Traditional vs. Modern: Weighing Your Options

Gone are the days of settling for meager returns. Today, two distinct avenues offer attractive interest rates:

• Brick-and-Mortar Banks: Established players like Fidelity, Access, and UBA provide stability and familiarity, but their interest rates typically hover around 1-3%.
• Fintech Apps: Piggyvest, Cowrywise, and Alat by Wema offer digital convenience and significantly higher rates, reaching up to 18%. However, these are relatively new players, and some might prefer the established trust of traditional banks.

Considering Your Needs:

Before diving in, ask yourself:

• What’s my goal? Short-term savings for emergencies? Long-term goals like a house or retirement? Different options cater to different needs.
• Accessibility: Do I need easy access to my funds, or am I comfortable locking them away for higher returns?
• Risk Tolerance: Traditional banks offer lower risk but lower returns. Fintech apps offer higher potential rewards but may be perceived as slightly riskier.

Top Fintech Apps:

• Piggyvest: Flexible savings options, up to 13% interest, automatic savings tools.
• Cowrywise: Short-term and long-term plans, emergency savings, up to 12% interest, mutual fund investment options.
• Alat by Wema: Flexible and goal-oriented savings, up to 10% interest, money management tools.
• FairMoney: Two options: FairSave (flexible, 10% interest) and FairLock (fixed deposit, up to 18% interest).
• Kuda Bank: Flexible and fixed-term savings, up to 10% interest, easy transfers.

Remember: While these apps are regulated, they are still relatively new. Consider your comfort level with their track record.

Traditional Bank Options:

If you prefer established institutions, consider these high-yield savings accounts:

• Fidelity Bank HYSA: Up to 3.3% interest, tiered based on balance, bonus for low withdrawals.
• Access Bank HIDA: Up to 2.5% interest, tiered based on balance, free withdrawals within limits.
• UBA Target Account: Up to 1.20% interest, tiered based on balance, minimum opening balance required.
• GTBank Target Savings: Up to 1.15% interest, bonus for standing orders, non-transactional account.
• Polaris Bank – Polaris Wise: Up to 2% interest, tiered based on balance, debit card and cheque book options.
• Standard Chartered Bank – eSaver: Up to 1.25% interest, free monthly statements and online access.
• Sterling Bank – SRDA: Up to 2% interest, goal-oriented, minimum monthly deposit required.

Wrapping Up:

The best high-interest savings account depends on your individual needs and preferences. Weigh the pros and cons of each option, considering factors like interest rates, accessibility, and risk tolerance. By making an informed decision, you can watch your Naira grow and achieve your financial goals!

Bonus Tip: Regularly compare rates and features to ensure you’re getting the best deal. Remember, the financial landscape evolves constantly, so staying informed is key!

The post Grow Your Money in Nigeria: Top Savings Accounts to Open in 2025 appeared first on AFRICA EXPLAINED.

CreditWise loan app is a Nigerian lending service that offers you a simple and convenient way to borrow money online without collateral or documentation. The smartphone app allows users to borrow up to ₦100,000 unsecured.

An unsecured loan is a type of loan that does not require collateral or a down payment to obtain. It is usually short-term with very high interest rates.

If you are concerned about loan apps that call their customers’ contacts to defame them, then this app might be for you. CreditWise is professional, has considerate staff that does not defame customers even when they default. You can always speak to customer service to ask for a time extension if you fear you might fall short on repaying your loan.

CreditWise makes getting a personal loan simple by using the data on your phone, including your information, to verify your identity and create a credit score.

Getting a loan in Nigeria through banks and other official sources can be time consuming and require documentation like collateral, which most people don’t have. Which is why services like this can be very useful, especially during emergencies.

Although the app is still relatively new, customer’s reviews are encouraging. The app has so far gained over 1k downloads on the Google Play Store, with mixed reviews. It uses loan software to collect information about prospective customers, including phone records, banking transaction alerts, and BVN, to build the credit score of each borrower.

To qualify for higher amounts, be sure to keep good bank transaction messages on your phone and do not have outstanding debts with other loan apps!

Note that online loans like these are usually much more expensive with very high-interest rates because they are unsecured and require minimal documentation to get.

How to Download APK and get a loan from CreditWise app

• Download the CreditWise personal Loan App exclusively available on the Google PlayStore and install it on your Android phone.
• Register an account with your phone number.
• Preferably the phone number connected to your BVN as a one-time password will be sent to it for verification.
• Fill in your basic know-your-customer KYC information, including your residential address, next of kin, and employment details
• You will also be required to provide your Biometric verification number BVN.
• You’ll be charged N30 to bind your ATM card to your account to increase your chances and getting a higher loan amount.
• A one-time password OTP will be sent to your phone to confirm your details.
• After the submission of your loan application, the software will analyze your credit score and the final result will be shown in the APP.
• The result should be displayed in less than two minutes and if you qualify for a loan, the loan amount will be disbursed into the bank account directly.
• Make sure you’re using a good phone with enough memory space as you will be required to take a clear live selfie for identity.

Note that binding your ATM card with N30 does not guarantee that you will get a loan, you still have to pass the credit score check.

The N30 charged to bind your ATM card to your account is refundable, but can take anywhere from 7 to 12 business days for the money to be refunded back to your bank account.

Your BVN is linked to your credit score, so if you have an outstanding loan with other lenders or didn’t pay other lenders as at when due, expect your application to be rejected.

Your credit score is a record of your previous borrowings, how early or late you make your payments, cash transactions going in and out of your bank account among other information.

When you download this app you have to consent to it to get access to your phone book contacts that will serve as your guarantors, SMS to see your banking transaction records, apps on your phone to see how you use other loan apps and other details it uses to build your credit score.

Is CreditWise loan app legit or scam?

Yes, CreditWise loan app is a legit loan app that gives micro loans to a maximum amount of N100,000 to customers, but has really high interest rates and bugs that prevents smooth registration. caution should be taken before taking any online loan. Always read other customer’s reviews before you apply for a loan in Nigeria.

You should know that these loan apps are not registered or regulated by the CBN or any government agency in Nigeria. You are responsible for the security of your transactions with them and there is no way to seek redress for poor customer service.

Also its availability on Google play store does not make transactions performed on it secure. The play store merely provides an avenue for download, you are responsible for your own security while using loan apps in Nigeria.

Pros

• Easy and smooth registration process.
• Does not defame customers when they come short in repaying their loans unlike most loan apps operating in Nigeria.
• Can be used by students in times of emergency
• It’s legit, has been confirmed by admin that they actually do give loans.
• Completely online with no collateral required.
• High loan amount, up to 100k.

Cons

• Takes time to disburse loans after approval, some customers take days even weeks before seeing alert.
• Short loan duration especially for new users, starts at just 7 days.
• Very high interest rates on small loan amounts.
• High rejection rate.
• The app only works on Android smartphones.

When taking loan, be mindful of the repayment plan. If you take a 60 days loan with two repayment installments, the app might attempt to auto debit you on the due date of the first installment and even charge overdue charges before the end of your 60 days tenure.

You can change your ATM card password to prevent auto debit. This app has been reported to deliberately auto debit their customers even after they have made payments via bank transfer.

Because there is no regulations in Nigeria, most of these apps are loan sharks who might threaten to send messages to your family members calling you a scammer if you default on your repayment. It is best to avoid these apps if you have other options.

If you’re being threatened or bullied by any loan shark in Nigeria, see this Facebook group where you can find support and read about the experience of others who have suffered bullying from loan apps.

What other borrowers are saying about CreditWise loan app

These reviews were written by users on the Google play store.

Akan Ikpe wrote, “Registration and disbursement was excellent. I only request for a reduction in the interest rate and increased duration up to 21 or 28 days. I recommend the app to anyone who is in need of help.”

Kevwe Daniel wrote, “Please the money you showed me on the app is different from the money you disbursed to my account why will i pay money i didn’t see ..you were suppose to disbursed 19000 n some fraction to pay back 25k nw u credited my acct wit 11k that interest is too much do something about it okay.”

Herry Hills wrote, “This app is very useful and armful to someone bank account they remove #943 in my account after I blend my ATM card with 30 naira and the loan was not giving to me, am scared of my bank card now for Christ sake.” Read more borrowers’ reviews here.

Interest rate?

Loans service rate:6% to 24%, monthly interest 0.5%, the annual percentage rate (APR) on a CreditWise loan is 12%~30%.

-Example:If you choose a 3-month loan and borrow NGN20,000,NiceNaira charges an service rate of 6% and interest rate:0.5% per month, the APR is 12%. when 91 days due ,you need total amount repayments of NGN21,500.

Note that this interest rate and loan duration is just an example, expect your actual loan and duration to be much lower, but you can improve it by paying back your loan on time and keeping a good credit record.

Requirements?

• Be a legal citizen or legal Resident of Nigeria
• Be at least 18 years old.
• Have a Monthly income source.
• Bind your ATM card to your account
• Provide details of two of your next of kins including their phone numbers.
• Have a good credit score with no outstanding loans from other lenders.
• Have an active bank account.
• Your phone number must be the one connected to your BVN.
• Have a valid government issued ID card.

CreditWise app customer service number

• Service Hotline: 2348034063318 (9am – 6pm(Mon-Fri), Sat-9am-5pm)
• Service Email: support@creditwise.loans
• Our Office Address: 23a Moleye Street, Alagomeji-Yaba 234-01, Lagos, Nigeria

The post CreditWise Loan App Review: secure lending platform in Nigeria appeared first on AFRICA EXPLAINED.

Not only have visas been denied due to this, but I have also seen people losing jobs.

FACT: You can be in debt without taking out a loan.

HOW IS THAT EVEN POSSIBLE? It is possible. When you stand as a guarantor for someone taking out a loan.

So, what is the solution?

A Non-Indebtedness Letter

A Non-Indebtedness Letter confirms that there are no records of any outstanding bad debts, litigation, or registered judgments against the individual in our Credit Bureau database.

Actions that can land you on the BVN blacklist in Nigeria

Below are some of the things that could land you on the BVN Blacklist here in Nigeria.

Loan default: The most popular reason why people get on the blacklist is when they default in repayment to their creditor within the stipulated period. Even if you pay back days or weeks after your term has expired, it can still negatively affect your credit score and land you on the blacklist.

Issuing a dud cheque: Issuing a dud cheque on your account can get you into trouble. Not only will it land you on the BVN blacklist, but it can also get you arrested and prosecuted by the police. Issuing a cheque that you know will bounce due to an insufficient balance in your bank account is simply a bad idea.

Standing as a guarantor for a defaulter: Standing as a guarantor to someone unable to repay their loans can also affect you negatively. You, as the guarantor, might be held liable and unable to secure a loan until they clear their outstanding balance. Do not stand as a guarantor for anyone you’re not absolutely sure can repay their debt obligations.

Effects of BVN blacklist

Your BVN is perhaps one of the most important financial documents in Nigeria and if it is compromised, that can lead to some dire consequences, including but not limited to:

Unable to secure a loan: The most immediate consequence of being on the BVN blacklist is that defaulters will be unable to secure further credits. Most reputable lenders do run a background check on their potential customers to see their credit score. Individuals with outstanding loans usually get rejected during this process.

Unable to get jobs: Some employers do check the credit history of their potential employees, most especially banks and other financial institutions, but they will not consider people with negative credit for employment. These checks are usually done in the background without telling the applicant, applicants with negative credit will just be rejected without being informed of the reason why.

Unable to travel abroad: As getting a visa to travel abroad is becoming more and more stringent, some embassies now include credit history as part of their background check. Embassies prefer immigrants who can handle their financial responsibilities so that they don’t become a burden after travelling. If you are heavily indebted, your visa application might not go smoothly until you clear your record.

Unable to secure some government deals: Certain government deals, like a job with the Nigerian Intelligence Agency or even the CBN, might require applicants to have a spotless credit history. The point is, having your BVN is bad and can deny you plenty of opportunities. Luckily, there is a way to remove your name from the blacklist, even if you are on it.

Steps to remove your BVN from credit bureau blacklist

Request your credit report: You can request your free credit report from any of the credit reporting agencies in Nigeria. We recommend you use CreditConnection – their service is free and seamless. getting a credit report will enable you to see which institutions you are owing to and keep track of your loans. Note that loans from loan sharks and other online loan apps might not appear here if they are unregulated.

Pay your debt: The next step in clearing your name from being reported as a defaulter is to pay up what you owe. If you are in a financially difficult situation, ensure you contact your lender to discuss payment options that could ease the burden of paying the loan. Choose a payment plan that will work best for you and follow up until you settle your debt. You can also set up automatic payments on the due date to avoid missing a payment. 

clearance certificate/letter of non-indebtedness: Should you have a clearance certificate/letter of non-indebtedness, you can forward the letter to the credit bureau for verification from your lender.

Contact the Credit Bureau: After clearing your debt, your lender is obliged to contact the credit bureau and update your records, but this can sometimes not be done as the process is usually automated.

However, you may apply to the credit bureau where you were listed to have your credit profile updated. This can be done by contacting the Bureau via phone/email.

Helpdesk: https://helpdesk.creditreferencenigeria.net/

Email: support@crccreditbureau.com

Phone line: +234-807-209-0622

Your email should carry the following details:
your Full Name,
Phone Number,
Bank Verification Number (BVN),
gender,
evidence of payment and
Clearance certificates (if any).

This process might take 2–5 working days to be resolved so do not hesitate to follow up with the Credit Bureau.

list of licensed credit bureaus in Nigeria

A Credit Bureau is a private company licensed by the CBN to keep a database of how individuals and businesses handle their debt obligations. They keep a record of how much loan is being taken and how soon or late the loan is being paid back in order to protect creditors from loan defaulters. Here are the three main credit bureau agencies licensed to operate in Nigeria and their websites.

• CreditConnection
• CRC Credit Bureau Limited
• FirstCentral Credit Bureau

You can get your free credit report from any of the above. The CBN does not keep a record of the credit reports of Nigerians but outsources them to these private companies, who can show you yours for a fee.

FAQ

What does blacklisting of BVN means?

BVN blacklist means you won’t be able to get a loan from regulated institutions anymore, except from loan sharks, who will charge extremely high-interest rates. If your BVN is blacklisted, it can also affect your chances of getting a good job and travelling abroad if a thorough background check is run on you.

how can I clear myself from being blacklisted?

To clear yourself from the BVN blacklist, these are the things you need to do;

1. Request your credit report from a CBN-licensed credit bureau to know who exactly you are owing.
2. Pay your debt.
3. Get a clearance certificate/letter of non-indebtedness from your lender.
4. Contact Credit Bureau with proof and request that your name is cleared.

Can I change my BVN number online?

No, you cannot. Your BVN contains your biometric records including your fingerprints so it cannot be changed.

Can I have two BVN?

NO, you cannot. because your BVN is secured with your biometric information, it is only one number for every Nigerian citizen.

Is it true that after 7 years your credit record is cleared?

No, your credit record is permanent. your debt can only be cleared after you repaid your loan or you obtain a debt forgiveness.

How long does it take to be removed from CRB blacklist?

You automatically get removed the moment re repaid your loan. You can also send them an email to resolve any dispute, the process might take 2-5 working days to be resolved so do not hesitate to follow up with the Credit Bureau.

How do you know if your BVN has been blacklisted?

check if your BVN has been blacklisted by requesting your credit report for free from any of the credit reporting agencies in Nigeria. You also know that your BVN has been blacklisted when you are getting rejected for loans. Getting very high-interest rate offers on your loan application is also a sign that your BVN has been blacklisted.

What happens if my BVN has been blacklisted?

Blacklisted BVN will lead to your loan applications getting rejected or you will be getting very high-interest rate offers for short periods of loan from creditors that are willing to give you a loan. This is because you’re now deemed as high-risk, and loans to high-risk individuals are more expensive.

How to blacklist BVN?

Only registered creditors and loan providers can blacklist a BVN from getting further loans by submitting the debtor’s details to the credit bureaus.

Can my BVN be blacklisted?

Yes, your BVN can be blacklisted if you are unable to settle your loan obligations during the stipulated tenor. Some creditors do give a grace period after which they will report your BVN to Credit Bureaus and stop you from getting further loans. A reported BVN can also have other consequences including blocking your ability to travel or get certain jobs and government contracts that require a financial background check.

Now that you have seen solution to clear your name from BVN Blacklist, kindly share for people to be saved.

The post How To Clear Your Name from Bad Debts with GTBank’s Letter of Non-Indebtedness appeared first on AFRICA EXPLAINED.

We find it important to really let you know what these loan apps are really doing exactly.

Instant loan apps have become increasingly popular in Nigeria in recent years, offering a quick and easy way to get the money you need in a pinch. But how do these apps work, and what are the risks involved?

In this blog post, we’ll take a closer look at how instant loan apps work in Nigeria and discuss the pros and cons of using them. We’ll also provide some tips for borrowers who want to use these apps safely and responsibly.

So whether you’re considering taking out an instant loan or are you are just curious about how they work, read on for the inside scoop!

As earlier stated that Instant loan apps are increasingly popular in Nigeria due to the ease with which people can access loans from them.

They can easily be downloaded on any smartphone, and with just a few registration details, money will be disbursed to one’s bank account.

No doubt, loan apps do provide some succor to Nigerians, especially to meet financial emergencies, but care should be taken to avoid using loans to fund one’s lifestyle, as most loan app operators have been reported to use less than civilized methods to recover their money from defaulting borrowers.

Instant loan apps in Nigeria are largely unregulated, and most of their loan terms are extortionate, with repayment periods starting at just 7 days and very high interest rates.

Here are some facts about how loan apps operate in Nigeria.

Can Instant loan apps block my BVN?

No, loan apps do not have the ability to block anyone’s BVN. Biometric Verification Number BVN is a unique 11-digit number that identifies every Nigerian as they interact with the country’s financial infrastructure. The number is given and controlled by the CBN in association with licensed commercial banks.

Only the CBN can blacklist your BVN in cases where you have seriously violated the country’s laws. Loan apps, however, can block your BVN on their app and even prevent you from getting loans from other loan apps if you default on your loan repayment.

Some loan apps have the ability to report your BVN to credit bureau agencies, which can in turn blacklist you as a loan defaulter and prevent you from getting a loan from other lenders.

What happens if I can’t repay my instant loan apps’ loans?

Most loan apps will disturb you with persistent calls and SMS, some will call the guarantor’s phone number you provided during registration.

They will also try to auto debit the ATM card you have linked to your profile.

Eventually, when you fail to repay your loan after a long period, most loan apps will report your BVN to the credit bureaus and hand over your profile to a loan recovery company that will try to recover the loan on their behalf.

Can I go to Jail for not repaying online loans?

No, you cannot go to jail for defaulting on your instant loan apps repayment. The loan company wants their money, and when you’re in jail, you definitely can’t repay. Some loan sharks have been known to threaten their customers with lawyers and jail terms; they cannot send anyone to prison. The only thing they can do is report your BVN to credit bureaus to prevent you from getting further loans.

Why do loan apps ask for BVN?

The BVN number is a unique identifier linked to every transaction performed in Nigeria. Because every Nigerian only has one, it makes it easier for the instant loan apps to identify loan defaulters and deny them loans. You cannot change your BVN; if it gets reported to the credit bureaus for default, the only way to clear it is to pay all outstanding loans.

Are loan apps legal in Nigeria?

Most instant loan apps available on the Google Play Store are not legally registered and regulated by the CBN as microfinance institutions. A handful, like Palmpay, Opay, FairMoney, and Carbon, are recognized by the CBN.

How do I block these Instant loan apps?

You probably want to prevent the loan app from removing money from your bank account without your consent. After binding your ATM card to your profile, the only way to prevent this is to block and deactivate the ATM card. You can do this through your bank’s app or by simply going to your bank to block your card and request a new one.

Changing your card password does not stop auto-debit. Also, loan apps can still auto-debit your bank account after they’ve been deleted from your phone.

Can Instant loan apps access my contacts even after they are uninstalled?

Yes, they still have your contacts; you grant them access to your contacts when you first download the app, and most loan apps make a copy of your contacts immediately.

You can still prevent defamation by deleting your WhatsApp picture or limiting access to it to only your saved contacts by changing your privacy settings.

Most loan apps that defame people usually get their pictures from the WhatsApp profile.

Which loan app has the lowest interest rate in Nigeria?

Branch, Carbon, Kuda, and commercial bank’s apps have low interest rates. The interest rate on loan apps is not uniform; it is influenced by factors such as the credit score and repayment history of each individual borrower.

If you have further questions related to loan apps in Nigeria, leave them in the comment section below and check back on this webpage for updates.

I did not request a loan, yet money was disbursed to my bank account. What should I do?

Sometimes, some instant loan apps disburse money into a customer’s bank account who did not request one, or a customer might fill out the form and later change their mind due to the high interest rate or short repayment tenure, yet money will be disbursed into their accounts.

If you are experiencing something similar, immediately deposit the principal amount that was sent to your bank account to avoid paying interest on it later.

I mistakenly overpaid more than I borrowed from a loan app, what should I do?

Maybe you’re supposed to pay back N12,000, but you mistakenly sent N120,000 to the loan app’s account. In such a situation, you should request another loan in the amount that you overpaid. That is N108,000 in this example. It is usually difficult to get reimbursements in such cases, which is why you should be very careful and double-check before confirming any transaction.

I repaid my loan, but the loan app did not increase my loan amount?

It is standard practice that most instant loan apps increase the loan amount for their customers when they repay on time, but they are not under any obligation to do so. There are a few reasons why a loan app might not increase your loan amount even after you repay on time:

Their loan limit: Most loan apps have a loan limit, and they cannot borrow you more than that amount. For example, if the loan limit on an app is 50k, they will not increase your amount even after you have repaid your previous 50k on time.

Availability of funds: loan apps have certain amounts they have programmed their computers to borrow from customers; the system might limit your loan amount if their are plenty of other borrowers also applying. So your loan amount might not increase through no fault of yours.

Loan history with other lenders: Your loan amount might not increase if you have outstanding loans with other lenders or have refused to pay them on time. Your general loan history can affect your loan amount because loan apps want to do everything to be sure that you will pay them back on time.

How do I report a Nigerian loan app?

Most of the online loan apps that operate in Nigeria do so without licenses or regulation from any government agencies. In cases of serious rights violations, you can, however, file a complaint with the Federal Competition and Consumer Protection Commission (FCCPC). They are the government agency for customer rights protection in Nigeria, and they have been known to take down erring loan apps in the past.

If you have any further questions, you can leave them in the comment section below. This article will be updated with new information.

Do loan apps ask for upfront processing fees?

There are some loan apps, like To U loan that will ask you to pay an up-front processing fee before they will disburse the loan to your account. These apps are fraudulent and designed by scammers.

Once you pay any processing fees, they will cut off communication and just keep your money. Legit loan apps don’t ask for any payment before disbursing loans. If there are any processing fees, they will be deducted from the loan amount disbursed to your bank account.

The post How Instant Loan Apps Work In Nigeria, READ NOW (SECRET) appeared first on AFRICA EXPLAINED.