Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), said Nigerians should beware of illegal money lenders, known as loan sharks.
Emefiele said it on Tuesday at the end monetary policy committee meeting in Abuja.
Loan sharks offer loans at extremely high rates of return, strict recovery conditions in the event of failure, and generally operate outside the law.
The CBN Governor explained that those who seek loans from places other than microfinance banks or recognized institutions are at greater risk.
“You don’t need to go to loan sharks for a loan. People normally go to loan sharks because they are desperate and cannot access the bank,” Emefiele said.
“We found that those who are vulnerable are households that need money to do their business, but they cannot access bank financing and therefore go to loan sharks who charge them well above or twice. more than the amount borrowed and scheduled to repay in 90 days and if that doesn’t happen, they seize your house or your bikes.
“We can only continue to advise that there is no need to go after loan sharks. The central bank has set up the channel through which you can raise your funding such as through the target credit facility or the SME loan which has been set up through our microfinance banks.
“You don’t owe anyone anything, just go to the portal and fill in the form, submit your data, and if it is correct, you will be able to access the loans.”
He said several people had benefited from the microfinance strategy to provide loans at affordable rates of return, adding that CBN would pursue loan sharks.
“We have a large number of people who have testimonials about the facilities we have provided and who owe nothing to anyone,” the apex bank governor said.
“The bank is working to stop the loan sharks, and when these people are found, they will be treated without mercy.”