In northern Nigeria, from Bauchi to Katsina, informal goods-credit arrangements are leaving some rural households struggling to repay debts. In Giade, a group of women is trying to break the cycle through awareness, community support, and alternative livelihoods.

For Aisha, the fear did not end when she sold the goods she had borrowed. It followed her home, disrupted her sleep, and left her dreading the arrival of another creditor.

She had borrowed goods from different people, sometimes valued at 50,000 naira ($38), 30,000 naira ($23), or 40,000 naira ($30). But when she needed cash, she sold the goods at prices below their original value. The money she raised was often not enough to clear what she owed, and the debts continued to accumulate.

For about three years, she says, anxiety became part of her daily life.

Relatives come to the rescue

“I would spend both night and day without sleeping, thinking about who would come after me, who would come and humiliate me,” she recalls.

At times, the pressure was so overwhelming that she avoided going home.

“Sometimes, you would not return home until your legs could no longer carry you,” she says.

Eventually, her relatives stepped in to settle her debts. Her elder sister also gave her capital to help her start again, offering some relief from the financial pressure.

'Alinciba'

Aisha's experience illustrates the human cost of an informal credit arrangement known in Giade Local Government Area of Bauchi State as Alinciba.

The practice involves obtaining goods on credit and often selling them quickly for cash, sometimes at a substantial loss, while remaining responsible for repaying the full amount agreed with the creditor.

When the money raised is insufficient, some borrowers turn to other creditors, creating a cycle of borrowing that can become increasingly difficult to escape.

And Giade is not alone.

Similar informal goods-credit arrangements are reported in rural communities across several northern Nigerian states, although the names and practices can vary from place to place. In Katsina State, for example, the arrangement is known as Sabatta-Juyatta. In some other communities, it is called Gwarmai.

How 'alinciba' works

For households already struggling to afford basic necessities, what begins as a way to obtain goods or meet an urgent need can become a prolonged financial burden.

Fatima Muhammad Giade, leader of a local association campaigning against the practice, says Alinciba was previously known in the community as “kama-karya” before the name changed.

She explains that borrowers may obtain goods such as rice, flour, cooking oil, clothes, wrappers, plates and other household items. These goods are then sold, often at a lower price, to raise money for immediate expenses.

Fatima gives the example of goods worth between 150,000 naira ($112) and 180,000 ($135) being taken on credit, with the borrower expected to repay 200,000 naira ($150). If the borrower sells the goods for between 120,000 naira ($90) and 150,000 naira ($112), the proceeds may not cover the debt. The borrower is then left to find the difference, sometimes by obtaining more goods on credit from another person.

Multiple debts

That second transaction can create a new obligation before the first has been settled. If the pattern continues, the borrower may find herself juggling several debts at once.

Fatima says some arrangements also involve additional periodic payments when repayment is overdue, even while the original debt remains outstanding.

The consequences can extend beyond the loss of money. Borrowers may face pressure from creditors, disputes over repayment and the fear of being publicly embarrassed when they cannot meet their obligations.

For women responsible for managing household needs, the pressure can affect not only their financial stability but also their peace of mind and relationships with family members.

Cost of living challenges

Fatima says the practice became noticeable in Giade about five years ago, but concerns intensified over the last three years. She links its growth to rising living costs and the pressure on households to meet everyday expenses.

She estimates that women make up the majority of those involved, although that estimate has not been independently verified.

For many rural households, access to affordable credit can be limited. When money is short, families still need food, clothing, household essentials, and funds to respond to emergencies.

Informal arrangements may appear to offer a quick solution, particularly when borrowers cannot easily access formal financial services. But the terms can leave them vulnerable when the value of the goods they sell is lower than the debt they must repay.

A loan that does not generate income

Nasiru Marmara, an economic development analyst in the Sahel region, warns that borrowing for consumption can have harmful consequences, especially when interest or additional charges are involved and the borrowing does not generate income.

He argues that such debts can encourage spending beyond what a household can afford, exposing borrowers to long-term financial difficulties.

“People need to be sensitised on the problems these debts may cause,” he says, stressing the importance of public education and advocacy to discourage harmful borrowing.

Marmara believes the consequences can extend beyond individual borrowers, reinforcing cycles of poverty and putting further pressure on already vulnerable communities. He also calls for government intervention and appropriate regulatory measures to address harmful lending practices.

Temporary relief

His analysis points to an important distinction: borrowing is not necessarily harmful in itself.

Credit can help people invest in businesses, expand productive activities or manage temporary financial shocks when repayment terms are fair and manageable.

The danger arises when borrowing repeatedly covers basic consumption, the borrower receives less from selling the goods than the amount owed, and further charges or new debts make repayment increasingly difficult.

In such circumstances, borrowed goods may provide temporary relief without resolving the underlying shortage of household income.

Wider pressure of poverty and food insecurity

The concerns in Giade are unfolding against a difficult economic backdrop.

The World Bank estimates that more than 60% of Nigerians were living below the national poverty line in 2025. It also notes that poor households can spend as much as 70% of their income on food, leaving little room to absorb rising prices or unexpected expenses.

Food insecurity adds to the pressure. The Food and Agriculture Organization of the United Nations projected that 34.7 million people in Nigeria could face high levels of acute food insecurity during the June–August 2026 lean season without urgent action.

These national figures do not establish how widespread Alinciba, Sabatta-Juyatta or Gwarmai is. They do, however, illustrate the wider financial pressures that can make vulnerable households more susceptible to unfavourable credit arrangements.

Debt larger than borrowed capital

When much of a family's income goes towards food, there may be little left for school expenses, healthcare, farming inputs, business capital or emergencies.

An informal loan can appear to bridge the gap, but a transaction that leaves the borrower with a debt larger than the cash raised can deepen the very hardship it was meant to ease.

For rural women, the effects can be particularly severe when they have limited access to independent income, savings or affordable financial services. A debt that consumes their available resources can also reduce their ability to support their children or maintain a small trading activity.

This is why the problem cannot be understood only as a matter of individual financial decisions. It also raises questions about household poverty, consumer protection, financial literacy, inflation and the availability of practical alternatives.

Who is responsible — the lender or the borrower?

In Giade, community members have differing views on where responsibility lies.

Fatima acknowledges that both lenders and borrowers have a role in the transactions, but believes creditors bear greater responsibility when they offer goods on terms that borrowers may struggle to meet and then apply heavy pressure when repayment becomes difficult.

Amina Muhammad, another community member, also welcomes the women's association and says some creditors encourage people to take goods on credit before pursuing them aggressively for repayment.

Her concern highlights the power imbalance that can exist when one party controls the terms of the transaction and the other is borrowing under financial pressure. However, the circumstances of individual agreements can differ. Borrowers may knowingly accept unfavourable terms, while creditors may argue that they are entitled to recover goods or money owed to them.

Transparency on repayment terms

A sustainable response therefore requires more than assigning blame. It calls for greater transparency about repayment terms, awareness of the full cost of borrowing, fair treatment of people who fall behind and measures to prevent exploitative practices.

It also requires attention to the economic circumstances that leave people feeling they have few other options.

Beyond the immediate experiences of borrowers, the practice raises broader questions about access to financial services and the oversight of informal lending.

Shu'aibu Idiris, an economic analyst, argues that limited financial inclusion and weaknesses in the regulation of lending can leave people vulnerable to arrangements that operate outside formal financial systems. He says government should enforce applicable lending laws and ensure that institutional lenders obtain the required recognition and licences from the Central Bank of Nigeria (CBN). In his view, effective oversight is important in protecting borrowers and establishing accountability in the lending sector.

Redress for unfair treatment during loan recovery

However, the legal position needs to be considered carefully. Not every informal exchange of goods or personal loan necessarily falls under the same regulatory requirements as lending by a financial institution. The relevant authorities would need to clarify which rules apply to particular arrangements such as Alinciba and how borrowers can seek redress when they face unfair or abusive treatment.

Idiris also argues that improving financial inclusion should form part of the response.

When people cannot readily access appropriate financial services, they may turn to informal arrangements to obtain money or goods. Expanding access to suitable, affordable services could give households more options, although access alone would not eliminate poverty or guarantee responsible borrowing.

For communities such as Giade, the issue is not simply whether financial services exist, but whether people can access products that meet their needs without exposing them to unsustainable repayment obligations.

Cooperatives as an alternative

Idiris proposes that communities consider forming cooperative societies as one way to reduce dependence on harmful informal credit arrangements.

Cooperatives can enable members to pool savings, support one another during emergencies and, where properly managed, provide access to loans under agreed conditions. They may also help members build financial discipline and plan for household or business expenses.

Government and community leaders, he says, should educate people about how cooperatives work and how to establish and manage them effectively.

For rural women, a well-run cooperative could provide a collective means of saving small amounts regularly and accessing support when unexpected expenses arise. It could also help members finance small businesses or other productive activities instead of repeatedly obtaining goods on unfavourable credit terms.

Realistic repayment terms

But cooperatives are not automatically a solution. They need transparent rules, accountable leadership, sound financial management, and safeguards against mismanagement.

Members must understand their rights and obligations, and any lending should be based on realistic repayment terms.

The proposal, nevertheless, offers a potential route towards community-based financial support, particularly in places where formal services are difficult to access or unsuitable for low-income households.

For the women of Giade, such an approach could complement their existing efforts to raise awareness and help affected borrowers rebuild their finances.

Inflation and the expanding cycle of poverty

Dr Isa Abdullahi, an economic analyst, warns that practices such as Alinciba can contribute to an expanding cycle of poverty in Nigeria.

When borrowers sell goods at a loss but remain responsible for the full debt, they can lose the resources needed to support their households or maintain small businesses. If they then borrow again to repay earlier debts, the financial burden can continue to grow.

Abdullahi also argues that government should work to reduce inflation, which puts additional pressure on households already struggling to meet basic needs.

Rising prices can reduce a household's purchasing power, leaving families with fewer resources for food, healthcare, education and emergencies. Under these circumstances, people may increasingly depend on borrowing to bridge the gap between what they earn and what they need to spend.

Consumer protection

Reducing inflation would help ease some of this pressure.

However, it would not, on its own, address the risks associated with unfavourable credit arrangements.

Consumer protection, access to appropriate financial services, employment and sustainable sources of income would remain important.

The views of the analysts point to a common concern: tackling the debt cycle requires both protecting borrowers from harmful arrangements and addressing the economic conditions that make such borrowing attractive in the first place.

Women organise to break the cycle

In Giade, Fatima and other women have chosen to respond through community action.

Their association aims to discourage Alinciba, educate women about its risks and persuade those caught in the cycle to stop taking goods on unfavourable credit terms.

The group also provides modest support to women who agree to leave the practice. Members contribute money every two weeks, with Fatima saying each member contributes 2,000 naira ($1.50). The association uses the available resources to assist some women with food items, laundry soap, and other small forms of support.

The assistance is limited, but the idea is to offer women some immediate relief while encouraging them to avoid returning to the same borrowing arrangements.

Sensitisation

For someone who has become dependent on credit to meet every day needs, simply being told to stop may not be enough. Without money for food, household essentials or capital for business, the pressures that led to borrowing in the first place can remain.

That is why the association hopes to expand its work.

Fatima says the group wants to secure an office, obtain uniforms for its awareness workers, and establish a centre where women can receive education about the risks of the practice and learn vocational skills.

The aim is to give women more opportunities to earn income and reduce their dependence on harmful credit arrangements.

Much-needed relief

Fatima believes the association's awareness campaign has already helped reduce the number of women participating in Alinciba, although the group has not provided independently verified figures to measure the change.

Amina sees the initiative as a source of relief for women who may otherwise struggle to find support.

For women such as Aisha, escaping the debt cycle has required help from relatives.

The association is trying to build a wider community response so that women are not left to manage the consequences alone.

Beyond awareness: what needs to change?

Community-led action can help people recognise the risks of informal debt, but its long-term impact will depend on whether households can find realistic alternatives.

The analysts' recommendations point to several areas of action: public education about borrowing, appropriate oversight of lending, stronger financial inclusion, support for cooperatives, and measures to reduce inflation.

People need accessible information about the true cost of borrowing, the consequences of missed payments and the dangers of taking new loans to settle old ones. Relevant authorities also need to clarify the rules that apply to informal and institutional lending, protect borrowers from abusive practices, and provide clear routes for complaints.

Other measures could include improving access to suitable savings and financial services, supporting small businesses, providing vocational training and helping women develop sustainable sources of income.

Partnerships to end predatory borrowing

Dr Isa Abdullahi also urges the women’s association to seek support from development finance institutions, including the Bank of Industry (BOI) and the Bank of Agriculture (BOA), as well as international organisations and philanthropic foundations.

He believes such partnerships could help the women access financial assistance, livelihood programmes, skills development, and support for small-scale businesses, giving them alternatives to harmful borrowing arrangements.

The association's proposed skills centre could contribute to this effort if it receives sufficient resources and offers training linked to real economic opportunities. However, vocational training alone cannot remove poverty or guarantee that women will find paying work. Access to markets, start-up capital and continued support may also be necessary.

Community cooperatives could offer another option if they are managed transparently and responsibly. Meanwhile, efforts to control inflation and improve household earning opportunities could reduce some of the pressures that drive families towards repeated borrowing.

Concerted effort to defeat harmful loan practices

Monitoring the association's work would help establish whether its awareness activities are reducing participation in Alinciba, whether women are staying out of the debt cycle and what kind of support makes the greatest difference.

The experience in Giade also raises a question for other rural communities where similar practices exist under different names: how can local leaders, women's groups, financial institutions and government agencies work together to make safer options available?

The timing of the campaign against predatory loan systems gives the issue added significance.

The International Day of Rural Women is observed on 15 October, followed by World Food Day on 16 October and the International Day for the Eradication of Poverty on 17 October.

Practical support measures

Although each observance has a distinct focus, all three speak to challenges that intersect in the lives of women such as those in Giade.

Rural women play important roles in household welfare, agriculture, trading and local economies, yet financial hardship can restrict their ability to build savings, invest in livelihoods or withstand economic shocks.

When income is insufficient to meet food and other essential costs, borrowing may become a coping strategy. But when the terms are unfavourable and repayment becomes a cycle of selling goods at a loss and borrowing again, that strategy can undermine the household's ability to recover.

Addressing the problem therefore requires more than warnings about debt. It calls for practical support that helps women protect their resources, develop reliable livelihoods, and access fair financial services.

'Credit should not leave people with less money'

For Aisha, the intervention of her relatives helped her settle her debts and begin rebuilding her life. For other women in Giade, the local association is trying to provide a measure of support before the burden becomes overwhelming.

Their work remains modest, and its results will need to be measured. But it offers a community-led response to a problem that women say reaches beyond one town and is known by different names across rural northern Nigeria.

In Giade, the message from the women organising against Alinciba is straightforward: credit should not leave people with less money, fewer choices, and a debt they cannot escape.

For that message to become a lasting reality, awareness must be matched by fair lending practices, stronger livelihoods, effective consumer protection, and accessible alternatives for families struggling to make ends meet.