Title: IMPACT OF DIGITAL LENDING PLATFORMS ON HOUSEHOLD FINANCIAL BEHAVIOUR AND DEBT SUSTAINABILITY AMONG NIGERIAN YOUTH

Authors: Oyedokun, Godwin Emmanuel, Adetoro, Maroof Dare and Dr Moyosore Adewunmi

Abstract: The spread of digital lending platforms (DLPs) in Nigeria has deeply transformed access to credit for young households, offering instant, collateral-free loans through mobile applications. While these platforms promise financial inclusion and consumption smoothing, concerns have mounted regarding their impact on household financial behaviour and long-term debt sustainability, particularly among Nigerian youth. This paper examines the impact of digital lending platforms on household financial behaviour and debt sustainability among Nigerian youth. Drawing on a mixed-methods approach comprising a review of existing literature, recent survey data, in-depth interviews with financial experts and documented borrower experiences, the paper explores how features such as instant loan approvals, minimal documentation, and gamified borrowing experiences shape spending habits, savings culture, and attitudes towards indebtedness, analyses borrowing patterns, repayment behaviour, and the psychological drivers of digital credit uptake. Findings indicate that while DLPs provide critical liquidity for emergency and entrepreneurial financing, they concurrently encourage impulsive borrowing, weaken traditional financial discipline, and push youth into cycles of unsustainable debt. The study further reveals that aggressive recovery practices and opaque pricing structures exacerbate financial distress, undermining household debt sustainability. The paper concludes that without strengthened regulatory oversight, enhanced financial literacy, and responsible lending frameworks, the rapid expansion of digital credit risks establishing youth vulnerability rather than fostering economic resilience. This study calls for a balanced approach that preserves the innovative potential of digital lending while safeguarding the financial well-being of Nigeria’s youth by implementing comprehensive financial education programmes that emphasise responsible borrowing and effective financial management.

Keywords: Digital Lending Platforms, Household Financial Behaviour, Debt Sustainability, Nigerian Youth, Fintech Regulations.

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