For many Nigerians, online lending platforms have caused more harm than good. People often turn to these platforms for immediate financial relief, but they frequently encounter loan sharks, harassment, and disgrace from family and friends. A loan shark is an individual or entity that lends money at extremely high interest rates and often uses threats of violence to collect debts. Their rates are well above the legal limit, and they are often linked to organized crime groups.
The Governor of the Central Bank of Nigeria, Godwin Emefiele, warned Nigerians to beware of illegal money lenders, explaining that borrowing from sources other than micro‑finance banks or recognized institutions carries greater risk. Recently, the Federal Competition and Consumer Protection Commission (FCCPC) approved 173 digital lending applications to operate in the country—119 with full approvals and 54 with conditional approvals. This approval followed reports of harassment by digital lenders, prompting the FCCPC to launch a registration drive to protect citizens from the atrocities of these apps.
Despite the regulatory approvals, many Nigerians continue to face loan sharks. In a 2022 editorial titled “Loan sharks should be stopped, prosecuted,” the need for a crackdown on illegal online loan shark operations was highlighted as a symptom of Nigeria’s deteriorating economic situation. The editorial offered practical steps for victims:
1. **Stay calm** – Loan sharks often send provocative messages to intimidate borrowers. Remaining composed prevents them from gaining psychological leverage.
2. **Report to authorities and seek legal advice** – Contact security agencies and consult a lawyer. Legal professionals can obtain court orders to stop further harassment.
3. **Meet in public spaces** – If a loan shark requests a meeting, never agree to a secret or unfamiliar location. Choose a well‑known public place, bring a trusted friend, arrive early, and consider discreetly recording the conversation to avoid manipulation.
4. **Avoid loan sharks altogether** – The most effective way to prevent harassment is not to borrow from them in the first place.
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