Not every 'pay small small' deal is what it seems. Here's how to spot hidden charges and protect your wallet.
Buy Now, Pay Later is exploding in Nigeria — and so are the bad actors hiding fees in the fine print.
We've reviewed contracts from 14 BNPL providers operating in Nigeria. The fee structures are wildly inconsistent, and most customers sign without reading more than the first paragraph.
Here's exactly what to watch out for before you sign anything — including the questions to ask out loud at the checkout counter.
1. "Insurance" or "protection" add-ons
If an insurance fee is mandatory, it's not insurance — it's a hidden price increase. Genuine insurance is opt-in.
Ask: "Is this insurance optional? Can I see the cash price without it?" If the answer is "no, it's required", walk away or negotiate it off.
2. Late fees that compound daily
Some platforms charge 2–5% per day late. On a ₦200k plan, that's ₦4k–10k per day. After two weeks late, you owe more in fees than the original instalment.
Ask: "What's the late fee structure? Is it flat or daily? Is it capped?"
The OnBuy late fee is a flat ₦500 per missed instalment, capped at ₦2,500 per plan — and it's waived if you contact support before the due date.
3. Early repayment penalties
Yes, this exists in Nigeria. Some BNPL providers penalise you for paying off a plan early because they lose the future fees.
Ask: "Can I pay off the plan early? Is there a fee?"
A legitimate provider should let you settle early at any time with the remaining principal — no penalty. (OnBuy does, and you save the unaccrued fees too.)
4. Mandatory "service charges" added each month
Watch for monthly admin or service fees that aren't included in the displayed APR. ₦500/month sounds tiny — but on a 12-month plan, that's ₦6,000 you didn't budget for.
Ask: "What is the total amount payable, including every fee?"
That number — the total — is the only one that matters.
5. Auto-renewing top-ups
A few platforms automatically open a second plan for you when the first one closes. You wake up six months later still paying — for nothing.
Ask: "Will this plan automatically renew or open a new plan?" It should never. You should have to actively start a new plan.
The five-second test
A legitimate BNPL plan should show you the total amount payable upfront, in big bold text, with every fee included. If you have to dig for it, walk away.
At OnBuy, the total appears on screen before you tap accept. No hidden line items. No surprise additions. The price you see is the price you pay.
Protect your wallet. Read the contract. Ask the questions.
