#NepoBabies vs #LapoBabies: Can a Social Media Trend Improve Nigeria’s Credit Culture?
By Olusesan Ogunyooye
There is cause for concern in any growing economy where only “6% of adults borrow formally” (EFInA A2F Report, 2023). Credit is critical to any growing economy. It fuels consumption, drives business growth, stimulates investments, and promotes macroeconomic stability. In cases where it is growing at a snail’s pace, as reported in the A2F report, it creates both opportunities and challenges.
Today, over 700 CBN-licensed Microfinance Banks (MFBs), Fintechs, government agencies, telcos, and even traditional banks are addressing the challenges and leveraging the opportunities. But credit only grew by 4% between 2018 and 2023 – and that includes borrowing from families and friends. So, in a sense, we are not making much progress – if at all.
Debt in Nigeria is often framed as a stigma or a sign of desperation. People fear loan sharks, high interest, and dread how Nollywood has dramatized the consequences of loans. This is the heavy cultural stone financial institutions have been trying to roll away, only to succeed by 4% in five years.
A Snapshot of a Viral Movement
But while somewhere in Ikeja, agency strategists were building a campaign deck, dimensioning subcultures and digging for insights; the street of X (formerly Twitter) midwived a people’s movement: one that is deep, resonating, and even though it started as a trend, it could morph into a culture that could potentially turn the tide for a viable credit sector. A report by Musa Adekunle in The Guardian Newspaper captures the energy as: “…more than just a meme; it’s a mirror of class divisions in Nigeria… humour mixed with truth.”
At the centre of this organic narrative is Lapo, a legacy MFB brand.
Romanticizing the “Owo Lapo” (Lapo Money) and “Lapo Babies” Narratives
As a marketing professional, it is difficult not to romanticize the idea of leveraging these narratives to etch your brand into the hearts of millions of Nigerians. Lapo, in my view, has the right physical, digital, and now cultural infrastructure to leverage it.
According to Tech Cabal, Lapo serves around 6 million customers across Nigeria. In 2024 alone, the MFB disbursed ₦237 billion in loans, building on a cumulative disbursement that surpasses ₦1 trillion. Also, whether as a warning to the negative perception of the loan recovery system or a nod to clever survival tactics, the use of “Owo Lapo” and “Lapo Babies” in daily vernacular is extra firepower for a campaign.
What I hope is that if Lapo intends to ride this cultural wave, it will address its baggage of past criticism of aggressive loan recovery tactics. A campaign that simply rides this trend without acknowledging Lapo’s past risks being misconstrued as tone-deaf or opportunistic.
Can an Online Trend Translate to an Offline Shift?
Beyond what Lapo can and should do with this trend, the bigger question is whether a digital trend can change behaviour in the real economy, especially in credit finance, where trust, repayment terms, and regulatory frameworks matter far more than cultural buzz.
I don’t have any data showing that the #LapoBabies trend is driving measurable increases in loan uptake or repayment rates. However, I can wager it has the potential to herald a new era in our credit market. Only that this is only one of the pieces in the puzzle.
While other challenges, such as high interest rates, distrust in lenders, stigma around debt, and inconsistent consumer protections, continue to hold back credit demand, people’s association of “LapoBabies” with hard work, grit, and upward mobility might be a good first step. But make no mistake, getting a loan is more than how social media makes one feel.
Lapo and other financial institutions now need to show up as people’s champions, standing for those who start little and make much; and those who want more from life. They must seize this positive sentiment to mainstream and normalise credit. But more importantly, this is not a magic wand. They must tingle all the right nodes. This is a signal that if the players in Nigeria’s credit space address the negative perception of their systems and government and other stakeholders address the fiscal issues associated with credit, a simple social media trend might find its way into the history books of Nigeria’s journey to financial inclusion.