Grace Ashiru
Between 2022 and 2023, approximately 3.6 million Nigerians migrated out of the country. This number is expected to rise due to worsening economic conditions. A 2024 survey by Afrobarometer revealed that 33% of Nigerians have considered leaving the country, a significant increase from 11% in 2017.
For many Nigerians, migration will remain a distant dream unless they can find ways to fund their travels. For example, traveling to the United Kingdom for a one-year course now costs as much as ₦40 million ($26,000), making finances one of the biggest hurdles for migration.
Tielle Travel, a subsidiary of Social Media Centre Marketing, offers travel loans to individuals traveling out of Nigeria for various purposes, including business and study.
“Tielle is a regular loan app, but it is specifically tailored for travelers. Those looking to buy tickets, pay tuition fees, secure admission, and cover all other travel expenses can use the app. The two primary services are travel loans and travel savings,” explains Solomon Sanusi, Founder of Tielle Travel, in a conversation with Techpoint Africa.
Sanusi adds that Tielle Travel was created in response to the problem of Nigerians needing to sell their valuable assets to raise the necessary funds for migration.
Retrust MicroFinance Bank has seen impressive growth, with its balance sheet reaching ₦8.9 billion ($5.7 million) in under six months of operation.
Sanusi, who has extensive experience in the travel industry, recounts a story that led to the creation of Tielle Travel. About two years ago, a woman came to their office with her three children, seeking help to travel to the UK. She had all the required documents but lacked the funds to finalize her travel plans. This experience sparked the idea for Tielle Travel.
How Travel Financing Works
Tielle Travel finances business or study trips by either handing over the loan amount to the borrower or directly paying for the services or goods they need. Typically, the company finances up to 50% of the total amount required.
“Many times, people are forced to sell their properties to finalize travel plans. They often begin their journey with some financing but later find they need extra funds to complete the process. That’s when we step in as a support system,” says Sanusi.
The loan application process begins with a Know-Your-Customer (KYC) exercise that can be completed via mobile phone. This process helps the company verify the borrower’s identity, understand the purpose of the loan, and gather supporting documents such as an admission letter or visa approval.
Tielle Travel also offers savings options for travel expenses, allowing users to secure lower prices or take advantage of cheaper seasons.
By booking flights in advance, users can lock in lower travel costs, avoiding last-minute price hikes. If a user plans to travel during a peak season, Tielle secures the ticket at the current rate and allows the user to pay in installments up to the travel date.
“The travel savings are particularly beneficial for business professionals or corporate individuals looking to avoid price hikes when purchasing tickets. For instance, someone planning to travel in August or September can save on ticket prices by booking early in July,” Sanusi explains.
Tielle Travel has partnered with airlines, hotels, universities abroad, and other institutions to help users secure their travel plans. Users can monitor their savings progress through a dedicated savings calculator on the app, which helps them calculate the payments they need to make between the start of their savings and the travel date.
Tackling the Culture of Bad Loans in Nigeria
One significant challenge Tielle Travel faces is ensuring timely loan repayments. According to the 2024 financial statements of seven major banks in Nigeria, non-performing loans (NPLs) surpassed ₦1.57 trillion.
To address this, Tielle Travel requires borrowers to provide two individuals: one to co-sign the loan and another as a guarantor. The borrower who is traveling signs as the primary party, while the co-signer stays behind in Nigeria, and the guarantor provides additional security.
“We require that two people sign the loan document — the traveler and the co-signer. The co-signer’s role is to ensure the loan is repaid on time. We also maintain communication with the co-signer to keep the loan repayment on track,” says Sanusi.
Tielle Travel is working on forming partnerships with universities abroad to act as an additional layer of verification. These partnerships will help ensure that borrowers meet the necessary conditions and that loans are repaid.
“We are currently in talks with the University of Manitoba in Canada for such a partnership. Through these collaborations, institutions will help enforce checks on users and verify their claims,” Sanusi adds.
Funding and Partnerships
Tielle Travel has not yet raised external capital and is primarily funded by its founder. However, the company is exploring partnerships with financial institutions to provide liquidity and actively seeking funding from angel investors.
“We are in the process of finalizing a partnership with Globus Bank, which will help provide the necessary support for our first year of operations. After that, we plan to explore other sources of funding,” Sanusi says.
With a focus on the business and education travel sectors, Tielle Travel is entering a market worth ₦4.20 trillion. Travel costs continue to rise, and as the company acquires more users, it will need a reliable funding source to maintain its growth.
Additionally, the company’s approach of requiring loan repayments within three months of disbursement may be more suitable for businesses but could be challenging for students who are just settling into a new country. This differs from competitors like Prodigy Finance and Mpower, which offer repayment periods spanning several years after completing education.
Lastly, Tielle Travel must solidify its loan recovery strategy. In case of loan default, companies like Prodigy Finance take legal action and terminate loan agreements, ensuring outstanding balances are collected.
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