I could remember back then when I was still serving my father's land (NYSC). I served in Jos, Northern part of Nigeria. It was during my set that the federal government increased the allowance from 33k to 77k.
I thought all my problems has ended because I was wondering how I will be surviving back then on 33k. Luckily for me, the allowance was increased. I thought I have arrived and I thought I was now a big boy.
It was when I received the first increased allowance that reality sets in. I realized that feeding alone takes more than 40 percent of the money. Back then, Food was very expensive due to inflation.
The only food that is cheap is garri and it is not that it is that cheap but we can still categorize it as the cheapest. We all know that NYSC is a rigorous exercise and if you don't eat well, you might faint.
From PPA wahala to CDs to monthly biometric to hostel palava and the likes. This is how corpers lives on a daily basis.
When the allowance entered, I was already owing Fairmoney 30,000+ and the interest has grew to around 36,000 naira. After paying the money, I was left with N41,000. Back then, the Corpers lodge I stayed, we pay monthly rent of N5,000 each and we are four in a room.
After paying that, I went to the market and got some foodstuffs, the foodstuffs is close to N25,000. I didn't even buy the foodstuff that will last me till the end of the month because if I did, the money with me won't be enough for other expenses.
I am now left with N11,000. I will buy soap for bathing and washing, toothpaste, body cream. That will cost N1,500. The money remain N9,500. My transport fare for the month will cost about N8,000. I spent N2,000 weekly on transport for my CDS. I am now left with N1,500. I used that for data.
Before the 14th of the following month after receiving my first Allawee, I realized I don't have food stuff again and my gas has finished. I had no choice than to borrow online from Loan apps in order to get some foodstuffs that I will manage till month end and get extra money for data and other expenses that might occur.
This is the amount I borrowed:
- Foodstuff: N25,000
- Other Expenses: N10,000.
After borrowing this money which is N35,000, I was told I will be paying back N44,000 at the end of the month. Can you see how this people are exploiting us? Well, I have no choice.
The following month, I paid the debts I owe and I realized the remaining money from my allowance won't be enough for me till month end. This is how the circle continues.
I realized that the major reason why people borrow money online is because of food and that is why I tag it Borrow-to-Eat. In fact, it is a big problem that most people don't know yet.
How Did We Get Here?
This is how we got here. We all know that Nigeria minimum wage was increased to N70,000. This was signed into law on the 18th of July, 2024. It was stated that no worker should be paid less than N70,000 as salary.
But today, we still have some private organizations who pay below N70,000. In fact, they are many out there and people don't have choice than to do the job.
If they don't, they will surely die of hunger. This system has continued to increase the level of poverty and hardship among Nigerians.
That same year in 2024, there was inflation. The price of fuel goes up and the price of foodstuffs increased too and yet the income of workers didn't increase.
In fact, According to statistics, it was confirmed that even the minimum wage can't buy anything because foodstuffs, House rent and transport has increased.
If we look at these three things, they are necessities for humans. How then do human cope? They result into borrowing. It was during these periods that Loan apps made a lot of money and they also frustrated a lot of defaulters who couldn't pay.
Some defaulters who couldn't pay committed suicide due to the constant threat from these Loan apps. What a loss!
Out of all these, Food tends to be the major reason why people borrow. People might still decide to walk a long distance if they don't want to take public transport or sleep under bridges if they don't have house.
But they can never do without food if not, they will die. Food Inflation is the major reason why people borrow and this is how we got here.
Also, According to Nigeria's Central Bank Consumer Credit, it was discovered that Debt increased across Nigerians to N4.72 trillion. It was also discovered that about 80 percent of these loans is used for household purposes which automatically means feeding is one of the major factor.
This simply means people are not just borrowing to buy things or invest, they are borrowing to survive. The money you borrow to survive will become a bigger debt because consumption is not an investment that will help them to pay the debts.
The Trap That Makes People Poorer Day By Day
This is the lifestyle of people around the world. In fact, this is not only happening in Nigeria alone, it happens all over the world.
Workers go to work for a whole month, they receive their salary. However, before they received that salary, of course they will have to meet their daily needs like feeding.
Let's use this breakdown below:
Week 1: You borrow N25,000 to buy foodstuffs and cooking gas. At the end of the month, you are expected to pay back N32,000
Week 4: You collect your salary, you pay the debt and realized that what you have left is not enough to take you for the whole month before your next salary.
You have no choice than to borrow again. The cycle continues and one thing about borrowing is that the more you borrow, the more you increase it with time because you will realize the money you were borrowing before is no longer enough for your daily expenses.
Borrowing to survive is what keeps most people Poorer Day by Day. It is a pity that people are not even talking about this.
I have met with a lot of Businessmen, Okada riders, POS operators, students, teachers and many more. Most of them attest to these facts. They said the reasons why they borrow mostly is because of feeding.
I met with Mrs Risikat, A Nigerian when I traveled to Portugal. I had a long discussion with her after she found out I was a Nigerian as well. I asked her what is the major reason why she borrows.
She said it is because of food most times. She said she can't just afford her children sleeping on empty stomach and since nobody will be willing to help because everyone is going through the high rate of inflation. She results into borrowing every month, paying back when she receives her salary. Borrow again the next month, pay back and the cycles continues.
I found out that my observation is true and my study is accurate.
How to Come Out Of It- Solution
1. Budget for Food First: Whenever you receive your salary or income, the first thing is to budget for the food that will last you for the month. When you eventually get the food, don't eat it anyhow because I know most people are greedy.
Whenever they see excess food, they will begin to eat it. Remember, the food you bought is for a whole month. Don't just eat it anyhow if you want to come out of this rat race of borrowing, paying and borrowing again.
If you eat the food anyhow and it finishes before the months end, you will have no excuse than to borrow again and then the cycle continues.
Ensure you put this money budgeted for food into another bank account so you won't be using it for another thing. Also, ensure you budget for food first from your salary before you start paying other bills.
2. Borrow Food, Not Cash: Perhaps, if you must borrow. It is food you should borrow. That is exactly what you need not cash. Most times when you borrow cash, you will realize it is not enough to get the quantity of food you need and that will push you into your rat race again.
If you want to borrow, meet with your friends, neighbors, close people and tell them you don't have foodstuff. Tell them you will appreciate anyway they can help. See, if you do this, you are not a beggar. You are only trying to survive.
Yes, it might look like begging but then if you do it. People will surely come through for you and it will stop you from borrowing. When next your salary comes, you will know you don't have to pay any debt.
3. Buy Foodstuff In Bulk With People: Whenever you are buying foodstuff,it is advisable you buy it in bulk. It is very much cheaper when you buy it in bulk and you can peer with people. You could group yourself into 4,5 or even 6 peers and save up to get 1 bag of foodstuff, half bag of beans and the likes in bulk.
Then you will share it among each other. You will see that it is worth more than buying in small quantities that will quickly finish. If you don't have anyone to peer with, you can peer with people in Mile 12 market or Daleko or some popular market in your areas. People do this.
4. Use the 48-hour rule: Before you borrow next time, give yourself 48 hours before you go and borrow. Ask yourself what can you do or what services can you render or what can you sell to make some stipends that you can use to get foodstuffs.
There are so many menial jobs you can do that can give you quick 5,000 to 15,000 Naira. There are also services you can render that can pay you for your service..
Do these stuffs do you can make some cool cash for yourself instead of borrowing and paying interest again by month end.
5. Ensure your food never reaches zero: During the month, people might bless you with some tips. Ensure you use the little tips to restock few grains of food at home. It still counts and if you can't do this, ensure your food never reaches zero. Manage it judiciously. You are not meant to eat and be satisfied.
In fact, eating too much food is harmful to the body. Just eat the right portion and ensure it is balanced diet.
These are some of the few ways to solve the problem of borrowing to survive or borrowing to eat.
Conclusion
If you are borrowing to eat and you feel there is something wrong with you. I am happy to inform you that there is nothing wrong with you. It is a normal thing to do. As humans, it is necessary that we survive and that is exactly what you are doing.
You are only passing through this because you are a victim of bad economy or as a result of high rate of inflation.
Cost of living has turned almost everyone to debtors. We have gotten to the stage where even the rich cries.
This is not about how good you are in managing money, it is about survival. This is why we have curated some tips on how to get out of this rat race. One of them which is the prominent one is that you must budget for foodstuff first that will last you the following month before your next salary.
Once you have been able to tackle the problem of food shortage, then your problem of borrowing to eat will reduce drastically.
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