Even though Lagos is Nigeria’s business center, a new study shows that 7 out of 10 workers (or 70%) in Lagos can’t get loans or credit from their bosses.
This info comes from the “State of the Employed” report by PaidHR, a Nigerian company that helps businesses with HR management.
The report looks at different work trends in Lagos, checking out different groups of people—young, old, men, and women. Most people asked, about 51%, were aged between 19 and 35.
The report also shows that 58% of workers spend more than what they earn each month. They have to get extra money from things like payday loans.
“Our key findings include: 58% of workers spend more than their main income every month.
“7 out of 10 workers don’t have access to loans or credit through their employers,” the report says.
Productivity and Employee Happiness
The report also looks at how productive workers are and how happy they feel about their jobs in Lagos.
According to the report, 58% of people asked said their work output isn’t directly affected by money problems.
But, they said their mental and emotional health is very much affected, and they are quite unhappy with the support they get from their employers.
The study also shows that having too much debt makes workers 30% less productive in Lagos.
“Interestingly, 58% of people asked said their work output isn’t directly affected by money issues. They claimed that their mental and emotional state is more important, and they are unhappy with the support they get from their employers,” the report says.
What You Should Know
Nigeria has a big population that is growing fast. Many people still struggle to get loans or credit, especially those who earn less.
A lot of people, especially those who don’t make much money, can’t get loans from regular banks or microfinance banks.
This forces many Nigerians to turn to informal and often mean lenders—better known as loan sharks—that take advantage of gaps in the official financial system.
President Tinubu recently approved a consumer credit scheme to help workers get loans for important needs like housing, food, and healthcare.
There is also a new student loan scheme to help students get money for their education.
While these are good steps, they still don’t close the big gap between people and their access to money.