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| Nigeria Central Bank Governor, Godwin Emefiele. |
Dear Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, I am writing this open letter with great pain and anguish over the current challenge I found myself due to the inability of Nation's commercial banks to grant easy access to personal emergency loans in the country.
For the past years since the covid-19 pandemic, some dubious exploitative financial lenders infiltrated the Nigerian financial system offering easy loans but with outrageous interests and very short repayment period.
This lenders are quick to offer loans without outrageous requirements which has been the reason the average Nigerian is shut out of commercial banks operating in the country when it comes to easy access to loans.
However, while it is easy to access loans from these lenders, they also worsen the economic conditions of Nigerians who out of pressure and circumstances beyond their control, are forced into accepting these loans knowing it is impossible to repay within such a short period, usually 7- 14 days, and at outrageous interests of 20 to 40%.
I write this as one of millions of victims, and have been threatened daily by these dubious lenders who are out to destroy and not actually help Nigerians.
My complaints however, is not that these lenders exist, but that the existing licensed banks have failed to provide these basic loans for their customers which paved way for these criminal entities to thrive.
For example, I was offered a loan of N25,000 with 40% interest and a duration of two weeks. This means I am repaying N35,000 within two weeks.
However, if it were through the banks, I would be paying an average interest of 5%, which amounts to a total repayment of N26,250. A whooping difference of N8,750, and for a month, not two weeks.
These lenders know the difficulty in obtaining loans from banks, and are using this to their advantage, thus force millions of Nigerians into debts. This needs to change.
How can I operate an account with a bank for many years, yet still struggle to secure a loan? Not millions of naira, but as little as N10,000 to N100,000 to meet emergency needs?
If these lenders are able to make so much money from Nigerians through this dubious means, why can't the Nigerian banks do the same but without the outrageous interests and short duration?
If I can easily access N25,000 and to repay N26,250 in a month, this would be a huge deal for me. At least, my money is going back to the licensed financial institution, and not sharks who exploit the system to inflict more misery on the people.
THIS MUST STOP!
I am calling on all victims like myself to share this publication until it gets to the right people!