Kuda Microfinance Bank has once again captured the attention of Nigerians with the release of its annual spending report, ‘My Year on Kuda,’ providing customers with a comprehensive breakdown of their financial activities in 2024. Of all the insights in the report, customers’ usage of the bank’s overdraft feature stood out and sparked lively conversations on X.
Kuda Overdraft, which allows eligible Kuda customers to spend beyond their account balance at a low interest rate, has become a lifeline for many Nigerians navigating the country’s challenging economic landscape. Through ‘My Year on Kuda’, customers were able to see how many times they used Kuda Overdraft in 2024 and the total amount they borrowed. The responses online have been both humorous and insightful, shedding light on how deeply embedded Kuda’s overdraft feature has become in people’s financial lives.
One user on X humorously remarked, “I fit get money for another bank but my body no go calm until I spend that Kuda overdraft.” Another tweeted, “That Kuda overdraft too sweet,” and another said in unequivocal terms, “Kuda Overdraft saved my life in 2024.” These posts reflect a broader reality: Kuda Overdraft has redefined borrowing for a significant number of Nigerians.
For many, the appeal of Kuda Overdraft lies in its simplicity and accessibility which contrasts starkly with traditional loans that require cumbersome documentation and collateral. Eligible Kuda customers can instantly access funds when their balance runs low, with interest accruing only after the first 24 hours. This convenience has made it a preferred borrowing option for everyday needs, from paying bills to covering unexpected expenses.
Nigeria’s borrowing landscape has long been characterised by limited access to formal credit. The National Bureau of Statistics (NBS) estimates that 70% of bank account holders in the country lack access to loans from traditional financial institutions. Many Nigerians have therefore turned to informal lenders, often at exorbitant rates and with punitive recovery methods. Kuda’s overdraft feature offers a refreshing alternative: quick access to funds without collateral, coupled with a fair and transparent repayment process.
Unlike some digital lenders that have been criticised for unethical debt recovery practices, Kuda maintains a discreet approach. Customers with outstanding overdrafts are contacted directly and gently reminded to repay their debt. This ethical stance has further solidified the bank’s reputation as a customer-centric financial institution.
In a statement to customers earlier in 2025, Kuda CEO Babs Ogundeyi hinted at exciting updates to the overdraft feature set to roll out this year. “Kuda Overdraft transformed how Nigerians borrow, but we’re not stopping there. The next iteration of this feature is a game-changer, with updates like minimum repayments and detailed overdraft statements to make borrowing even simpler and more transparent. We are committed to making financial freedom accessible to you,” he said.
Kuda’s approach to lending aligns with the evolving financial needs of Nigerians, particularly in a time of economic uncertainty. The bank’s overdraft feature addresses a critical gap in the market by providing a safe, reliable, and affordable borrowing option. As more Nigerians turn to digital banking for their financial needs, Kuda’s continued innovation in this space positions it as a leader in the country’s fintech sector.
With plans to improve its overdraft offering, Kuda is set to make accessing and managing credit easier for Nigerians. The conversations sparked by My Year on Kuda are proof of the impact of digital banking solutions in addressing real-world financial challenges. And for many Nigerians, the Kuda Overdraft is more than just a tool – it’s a financial companion that is helping them navigate life’s ups and downs more comfortably.
