Emefiele Advises Nigerians To Avoid Loan Sharks And Instead Rely On Microfinance Institutions

The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, warns Nigerians to be wary of illicit money lenders known as loan sharks.

Emefiele made the remarks on Tuesday at the conclusion of the Monetary Policy Committee meeting in Abuja.

Loan sharks provide loans with exceptionally high-interest rates, harsh terms of collection in the event of default, and often operate outside of the law.

Those who travel to collect loans from places other than microfinance banks or recognized organizations, according to the CBN governor, are in greater danger.

“You don’t need to go to loan sharks for a loan. People usually turn to loan sharks when they are desperate and unable to reach a bank,” Emefiele explained.

“We discovered that those who are vulnerable are households that require funds to run their businesses but are unable to obtain bank financing. As a result, they turn to loan sharks, who charge them far more than or twice as much as the amount borrowed and expected to pay back in 90 days, and if that does not happen, they seize your house or bikes.”

“We can only continue to advise people not to turn to loan sharks.” The central bank has put in place avenues for you to raise funds, such as the target credit facility or the SMEs loan set up through our microfinance institutions.

“You don’t have to owe anyone; simply go to the portal, fill out the form, submit your data, and if it’s correct, you’ll be able to access loans.”

He stated that some people have profited from the microfinance technique of providing loans at low-interest rates and that the CBN will pursue loan shark criminals.

“We have a large number of people who have testimonials from the facilities we’ve made available and do not owe anyone,” stated the apex bank governor.

“The bank is working hard to catch loan sharks, and when they are caught, they will be dealt with mercilessly.”

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