Every week, Zikoko seeks to understand how people move the Naira in and out of their lives. Some stories will be struggle-ish, others will be bougie. All the time, it’ll be revealing.
When did you first realise the importance of money?
It was when I was 15 years old and just earned my first salary at the provisions store where I worked as a salesgirl. My pay was only ₦10k, but I was extremely happy to have my own money. I could finally get what I wanted without hearing my parents say, “We don’t have money” or “I can’t give you.”
Earning my own money gave me freedom, and I loved it.
What was the financial situation at home like?
Not great. My siblings and I barely survived on my parents’ earnings as petty traders. There was food, and we went to school, but I knew we didn’t have much. My clothes were hand-me-downs from my aunt. My parents demanded convincing explanations before they gave me money.
As soon as I finished secondary school in 2015, I looked for work. With my sales girl salary, I took care of personal needs and occasionally dropped money at home for food and my siblings.
After a few months, I worked at another store for ₦15k. I honestly just moved from place to place, looking for money. I had several stints as a teacher, catering assistant, and even selling thrift clothes. The clothes were more lucrative than my other stints, but selling them was really stressful.
How so?
I had to drag heavy bags of clothes across hostels to sell. Plus, people are funny. One babe can try out like ten pieces of clothing only to say she wasn’t ready to buy.
So, I only survived a few months of the thrift business, too. Then, in 2017, some friends told me about a mini-importation opportunity from China. I’d bring in bags from China for cheap and sell them off at a profit in Nigeria. It sounded good, so I took a ₦400k loan at a 10%/month interest from a money lender to add to my savings and started the business.
Was the profit what you imagined?
Oh, the profit was good. I made up to ₦50k in a good week. But selling the bags took longer than I planned. I assumed I’d sell off all the bags in two weeks so I’d repay the loan and get another batch. Two months later, I hadn’t sold the stock.
To make matters worse, I sold by the roadside in a very busy market. I was there under the sun and in the rain, and it was very embarrassing at times. When people who knew me saw me, they’d go, “Ehya, sorry. The Lord is your strength.”
Even me, I know I looked wretched and tattered. I was making money, but it didn’t show on my face. I stuck with the business for over a year, then I stopped when it became too stressful. If I didn’t stand on the road all day, I wouldn’t make anything.
I wanted something that would bring money without all that stress.
I can imagine. What did you do next?
Out of nowhere, I had the idea to become a money lender. The person who loaned me ₦400k for my business didn’t have another job. She just sat at home while I struggled under the sun to repay her. It seemed like a good business idea to me.
Plus, I’d mostly saved what I made from my businesses. I barely spent on anything that wasn’t food, and I had minimal responsibilities. In 2019, I started with about ₦500k and my heart in my mouth. Human beings can be funny; what if they took my money and ran away? So, I started with small loans: ₦50k here, ₦20k there.
My first customers were market people who I told I offered loans. Others came to me through referrals from my friends. I’m still a money lender till today, and people know to come to me if they need urgent money.
What are the terms for the loans? How do you make a profit?
I charge a 15% – 20% monthly interest. There’s no specific time frame for people to repay the loans, but the interest increases for as long as it takes to clear the loan.
For instance, someone comes to borrow ₦100k. When I add interest, they’re paying back ₦120k. I prefer weekly repayments, so I divide the ₦120k into four installments and tell them they’re repaying ₦30k every week. If they miss any week and the payment plan exceeds a month, I add another 20% interest to the initial principal.
Do people complain about the compounding interest?
They do. In the beginning, I felt bad and considered reducing the interest. But my loans are much faster than banks and cooperatives, and people prefer that. Rather than wait days, I give them the money immediately.
Also, I made repayment options flexible. I accommodate daily, weekly and monthly payments. Daily repayments have a lower interest rate because I reasoned that I could collect the cash, add some to it and loan to someone else. So, it’s a win-win situation.
Plus, I sometimes give people grace when payment defaults, especially market women. That category prefers daily repayments because they sell every day. But there are no sales on some days, so I understand. If the daily repayment was supposed to finish in a month and they miss any of the days, I don’t recalculate interest as long as they clear the loan within the month.
I can also decide to give a month’s interest-free grace for them to balance up. It just depends on the person and their repayment history on previous loans.
The loan business is mostly trust-based. Sometimes, I ask for guarantors and collateral. Collateral depends on the loan value. People have dropped land documents as collateral. Some also drop gold and washing machines. It still doesn’t mean they won’t default sha.
But if I trust the person, I don’t even collect collateral or guarantor before giving them loans. That usually comes back to bite me, though.
I was just about to ask how you handle difficult debtors
They’re almost all difficult. When people need money, they can roll on the floor crying and give you one million stories. Once it’s time to pay back, they change. That’s when they remember their husband or child is ill, and they need to take them to the hospital.
So, it’s stressful. I have to call, shout, and threaten before people repay their debt. I have gold jewellery, washing machines and other properties in my house that people left as collateral. The agreement is, once they’ve defaulted payment for six months, I remind them about the collateral again, and if they still don’t pay, I’ll sell their belongings. I’ve once sold someone’s speaker system.
What is the most stressful experience you’ve had with debt recovery?
A few years ago, I loaned ₦800k to a butcher who also served as a pastor in a church. A friend brought him to me, so I didn’t ask for any collateral because I assumed he was religious and would honour our agreement.
The man moved out of his house two weeks after he got the money. No one knew where he went, and his phone number was switched off for months. When I was able to reach him with another number, he ended the call after hearing my voice. Sometimes, he’d just pick up the call and wait for me to talk. I’d just be swearing and shouting, and he’d be absolutely silent.
I involved the police, but they just collected my money. They asked me to pay ₦10k for mobilisation, and then I kept dropping money for one thing or the other. At one point, the police told me I didn’t have a case since I was illegally operating a loan service without certification.
After a few more months, I traced him to his church and attended a Sunday service. When it was time for testimonies, I went to the front and said I had a testimony to give. Immediately the pastor saw me, he started sweating.
I’m screaming
I told the church to help me thank God I finally caught one of my customers who ran with my money. Everyone shouted, “Praise the Lord,” not knowing it was their pastor. I left the testimony at that.
After service ended, the man begged me to calm down and told several stories, trying to explain the payment delay. I calculated the accumulated interest, and we settled on a timeline for him to pay my money. He paid every single dime because he knew I could embarrass him.
At least that story ended on a good note. There are several others that didn’t end so well. One took my money and ran to Germany. I can’t do much because I don’t have written agreements, and the business is “illegal”. The most I do is pay soldiers to harass my debtors. Even the soldiers try to be careful because it’s outside their primary job, and no one wants to get into trouble.
But still, I really like what I do. It pays me. Instead of spending money or keeping it, I can give it out and know it’s working for me. I see the loss as a normal part of any business, so I just overlook it. Also, I make more profit than losses.
What does this profit look like in a good month?
Up to ₦1.5m most months. I currently have over 60 active loans that bring me interest monthly. So, I earn well, but the stress is a lot too. I’m sure my neighbours wonder why I’m constantly screaming at my phone. I’m also considering investing some of my money in livestock farming. Then, I can maybe loan money to people I trust or have very good collateral.
How much do you imagine you need to start a farm?
With about ₦5m – ₦7m, I can get land, buy goats, pigs and cows and start small. I might start with about 100 livestock and see how it goes. I don’t know much about livestock but I’ll learn just like I learned with my loan business. If the livestock isn’t lucrative or doesn’t work out, at least I’ll still have the land to resell and cover any loss.
I’m also not sure I’ll start this year as I’m still in school, but I intend to finance the farm with my loan business. So, I don’t plan to stop loaning out money yet. I’ll just have two income sources.
You’re in school? I feel like that came out of the blue
See, funny story. I’ve been in uni for about 10 years due to several unfortunate situations. Like most Nigerian children, everyone told me I had to study medicine to become rich.
I wrote JAMB and got into uni in 2015, but I didn’t meet the cut-off score for medicine, so the school offered me optometry. You need to know physics and mathematics to do well in optometry, but those subjects weren’t my strong suit. I wasn’t happy with optometry, and I didn’t enjoy it, but I stayed because my mum had already told everyone her daughter was a doctor of optometry.
I managed to pass the first two years but repeated the third year. Around this time, I was hustling and selling thrift and bags since I was — still am — financially responsible for my education. Maybe that even affected my studies. The department kicked me out when I didn’t pass my courses on the second try.
Then, there was the delay with ASUU strikes and COVID. In 2021, I transferred to 200-level physiology, and I’m just trying my best to finish this one. I’m currently in my final year. If I knew better, I’d have just studied business administration or something. But I’m close to the finish line, so that’s good.
I’m rooting for you. Back to your current income, what quality of life does it afford you?
I live way below my means, but my quality of life is better than ever. One good thing about money is the confidence it brings. When I was struggling, I sometimes had to endure dates with guys I had no interest in because I wanted to eat fried rice, salad and chicken. I love fried rice but couldn’t afford it, so when the opportunity came, I accepted just for food and ice cream.
Now? I can eat all the fried rice I want. Even today, I bought fried rice and turkey. Something that used to be a treat is now my life every day. If someone asks to meet up, I can look at what they can offer beyond food. I don’t need to hang out with someone I don’t like or endure a misogynist because of peanut money.
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Having money has also expanded my dreams. There are things I never thought about when I was a salesgirl. I’m planning to buy a car soon. I also want to travel for vacations. I didn’t have these kinds of thoughts a few years ago because they were beyond me.
I just need to learn how to balance my desire to make money with actually spending money. I don’t know how to spend money at all. Rather than spend it on myself, I think, “It’ll be better to loan out this money to bring interest for me rather than finish it.”
Seeing how I live, no one would believe I earn this much. I live in a one-room apartment, and my rent is slightly below ₦100k. I can make that money in two days. The only thing I spend on is food. I’m just trying to learn how to spend money. I only recently got a bedframe and a bigger mattress — I was using a small student-sized mattress.
Also, I was a natural hair babe until recently because I didn’t want to spend money buying hair. But my hair always looked rough because I didn’t know how to maintain it. It goes to show how deeply rooted my reluctance to spend money is. But moderation is key, and I’m gradually adjusting. Maybe diversifying my income source into farming will help me relax.
What are your recurring monthly expenses like?
I typically don’t keep track of my expenses because I’m more likely to talk myself out of even making the expense. But the ones I remember usually go like this:
I call most of my debtors on WhatsApp, so I hardly spend money on airtime. I don’t have savings; all my money goes back into my business.
Is there anything you want right now but can’t afford?
I’d like to just travel to different places and meet new people. You know, be in France today and Switzerland tomorrow. I can’t afford that now, but I hope to do that one day.
How would you rate your financial happiness on a scale of 1 – 10?
100! Sometimes, it still feels like a dream that I’m where I am today. I like the confidence that money gives me, and I’m so happy.
Love it for you. Out of curiosity, are there any financial obligations on you from your family?
No, and it’s deliberate. I like making money, and I believe if you’re asking me for money, you don’t want my growth. I have a friend who’s doing well financially, but she’s always broke because of family responsibilities. I can’t do that.
Imagine trying to come out of poverty and trying to drag your family along when you aren’t yet balanced. If one isn’t careful, the family will still drag that person back into poverty. When I first started earning money, I was dropping money left and right. But I gave myself sense and reduced it. Thankfully, my mum has a business and hardly asks for money. So, I don’t do more than myself.
If you’re interested in talking about your Naira Life story, this is a good place to start.
Find all the past Naira Life stories here.
