The Naira was devalued by the CBN (Central Bank of Nigeria) on June 22, 2016 to cushion the effect of the crash in global oil prices, which of course affected the country significantly – I’m sure you know why.
This move caused a chain of reactions: Imported goods and services became more expensive. Retailers increased prices. Fuel price got adjusted. Inflation rose. Unemployment rate more than doubled.
Nigerians (whether ordinary or extraordinary) were greatly hit – there were complaints right, left and centre. Everyone was searching for money – Gulder Ultimate Search style – to stay afloat.
On TopCheck, demands for loans increased by 29% to a staggering 30,000 search requests in the two weeks after the devaluation of the Naira.
“During the two months before the devaluation, when black market rates spiked, we already experienced an increase in loan search volumes by roughly 10%, but since the devaluation the situation changed dramatically. We now see an increase in demand for Loans by an astonishing 29% daily,” said Christian Wiesner, co-Founder of TopCheck.
Unfortunately, many of the loan requests weren’t fulfilled because TopCheck’s partners, which are banks as well as microfinance institutions, demand proof of a steady income in order to get a loan.
In the next couple of months, TopCheck believes many loan requests will be fulfilled as the devaluation of the Naira was the first necessary step to create trust for foreign direct investment, which, according to reports, are beginning to come in gradually, that creates new jobs and opportunities.
Founded in 2015, TopCheck aims to become the premier price comparison site for Insurance, Broadband Internet and Loans in Nigeria.
On TopCheck, people can compare prices and benefits of products for free and apply directly online. The applications are then forwarded directly to the bank or insurance company for approval.