Business and Economy

Loan Sharks Detrimental to Economy, Empower MfBs to Give Loan – Ex-CIBN President to CBN

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2 years ago

July 17, 2023

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Loan Sharks Detrimental to Economy, Empower MfBs to Give Loan – Ex-CIBN President to CBN

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A past president of the Chattered Institute of Bankers of Nigeria (CIBN), Mr Okechukwu Unegbu, has decried the proliferation of “loan sharks” in the Nigerian financial system, describing them as dangerous to the economy. adsbygoogle || []).push({}); js">

Unegbu, a financial expert, said this in an interview yesterday in Abuja.

He advised the Central Bank of Nigeria (CBN) to empower Microfinance Banks (MfBs) to be more functional in their lending role to small businesses so as to eliminate the menace of loan sharks.

“These loan sharks are dangerous to the economy, and the CBN should do everything to eliminate them. “They give loans to people and when there is a default they call all contacts in their phone to embarrass them; it’s unethical.

“The MfBs are better positioned to offer such service, and I’ll urge the CBN to empower the MfBs to be able to carry out their mandate more effectively,” he said.

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NAN reports that loan sharks are digital lending platforms that offer loans at extremely high interest rate and often use threats to collect debts. The activities of the digital lending platforms were often not in conformity with the CBN consumer protection regulation which mandates financial institutions to ensure that debt recovery processes are transparent, courteous and fair.

The apex bank said that the process must be devoid of undue pressure, intimidation, harassment, humiliation or threat.

According to the regulation, institutions shall engage and give customers notices of outstanding obligations prior to the commencement of a debt collection. Also, the apex bank had said individuals in need of funds should approach regulated institutions and desist from borrowing from loan sharks.

During a recent Monetary Policy Committee meeting, the suspended CBN governor, Godwin Emefiele, had expressed displeasure in the way loan sharks handle customers who defaulted. “If you go to a loan shark to borrow, you will pay two or three times the amount in 90 days.

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“When you refuse to pay, they will seize your property; bicycle or television just to collect N200,000,” he said.

He however said regulating the loan sharks was a challenge since they were mostly in rural areas and unregistered.

“Moreover, the CBN is not a law enforcement agency like the police,” he had said.

Meanwhile, the Federal Government recently approved 173 digital lending platforms to operate in the country. According to the Federal Competition and Consumer Protection Commission (FCCPC), the approval is to protect citizens from the atrocities of loan sharks.

Some of the approved loan apps are Sycamore Integrated Solutions Limited, Trade Depot, Tajow Investment, Blue Ridge MfB, Grolatech Credit Limited, Branch International Financial Services Limited and P2vest Technology Limited. Others are Creditwave Finance Limited, Keenest Tech Service Limited, FairMoney MfB, Altracred Finance Investment Limited, Crevance Credit Limited, Menacred Company Limited, Afrowide Development Limited, Red Planet Nigeria Limited, Afrofirst Mobile and Technology Company Limited. There are also, Rankcapital Limited, IBS Golden Investment Company Limited, Lendvisery Services Limited, Renmoney MfB, GTB Quick Credit App, ALAT by Wema, among others.

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Source: NAN

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Business and Economy

FG, Afreximbank Assess Nigeria’s Readiness for Africa Energy Bank Commencement

Published

4 weeks ago

February 13, 2025

Abdulrahman Obaje

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Ahead of the commencement of operations of the Africa Energy Bank (AEB) in Abuja, the Federal Government and the African Export-Import Bank (Afreximbank) teams have assessed the country’s readiness to host the bank.

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A statement issued on Thursday by Nneamaka Okafor, Special Adviser, Media and Communications to Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), stated that the assessment followed the visit of Dr. Benedict Oramah, President, African Export-Import Bank (Afreximbank).

According to the statement, the visit/assessment was in furtherance of ongoing engagements towards the commencement of operations by the Africa Energy Bank, a landmark initiative expected to transform the continent’s energy landscape.

“The establishment of the bank is a collaborative move between Afreximbank and the African Petroleum Producers Organisation (APPO), which will see the bank take off with an asset base of five billion dollars.

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“It is projected to grow to 120 billion dollars in five years’ time, marking a significant milestone in Africa’s quest for energy security and sustainability.

“Afreximbank, as a key partner, is transferring her full equity investment in the oil and gas sector, underscoring its commitment to driving energy infrastructure development across the continent.”

Okafor quoted Lokpobiri as reiterating during the meeting, Nigeria’s strong support for the AEB and its pivotal role in unlocking Africa’s energy potential.

He called on industry stakeholders to engage proactively and explore the vast opportunities this initiative presents.

“The bank represents a bold step in ensuring that Africa controls and finances its energy future. It is an avenue for stakeholders to invest in a self-sustaining energy sector that will drive industrialisation, job creation and economic prosperity.

“Nigeria, as a leading oil and gas producer, is well-positioned to leverage this transformative initiative. We encourage industry players to seize this opportunity to invest in Africa’s energy future,” the statement quoted Lokpobiri as saying.

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Following the discussions, the minister and Afreximbank president proceeded to the AEB Headquarters for an inspection to assess the level of readiness ahead of the commencement of operations.

The visit provided first hand insights into the bank’s operational preparedness and strategic alignment with Africa’s broader energy development goals.

Speaking on the significance of the AEB, The Afreximbank President, Oramah, emphasised the bank’s role in bridging Africa’s energy financing gap.

According to him, the establishment of the AEB is a game-changer for the continent.
He commended Nigeria for taking the bull by the horn in hosting the AEB headquarters and expressed confidence in Nigeria’s oil and gas portfolio, as it would not only benefit the sector, but would guarantee immediate benefit for Nigeria.

The bank was initially scheduled to commence operations January this year. (NAN)

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Abdulrahman Obaje

Prince Abdulrahman Obaje is a Media, Information and Computer Technology Consultant. A quintessential Journalist, online marketer, social media strategist, Mathematician and Computer Scientist is based in Abuja, Nigeria. He is the Founder and the Publisher of The Informavores!. You can reach me on +234 805 939 5252 or send i-witness report directly to me on news@informavores.com.ng.

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Business and Economy

Kogi GOBO Initiative Empowers Petty Traders in Kabba Central Market, Reinforces Support for Governor Ododo

Published

4 months ago

November 24, 2024

Abdulrahman Obaje

Kogi GOBO Initiative Empowers Petty Traders in Kabba Central Market, Reinforces Support for Governor Ododo

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By Abah Benjamin Eneojoh

The Kogi Forum of Senior Special Assistants (KFSSA) and leaders of the Governor Ododo Business Outreach (GOBO) today 22-11-2024 visited Kabba Central Market to empower local traders and engage community leaders.

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This outreach program marked a significant step in bringing socioeconomic development closer to the grassroots.

Led by Hon. Yahaya Shehu Ahmed, Chairman and Director General of GOBO, the delegation began their activities with a courtesy visit to the palace of His Royal Majesty, Oba Solomon Dele Owoniyi. The traditional ruler commended the initiative and the foresight of Governor Ahmed Usman Ododo in appointing competent individuals dedicated to improving the lives of citizens.

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The team then visited the official residence of the Executive Chairman of Kabba-Bunu Local Government Area, Hon. (Barr.) Zacchaeus Dare Michael. He expressed his appreciation for the efforts of KFSSA and GOBO, noting that the outreach was a commendable step toward bridging the gap between government appointees and the grassroots.

At Kabba Central Market, the GOBO team provided direct financial support to 20 petty traders, including sellers of berneseed, tomatoes, and roasted plantains. Each beneficiary received 50,000 naira to expand their businesses. The gesture aimed to improve the economic situation of the traders and inspire confidence in the government’s dedication to addressing the needs of ordinary citizens.

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The initiative also included plans to monitor the progress of the beneficiaries, ensuring that the financial assistance achieves its intended purpose. Hon. Femi Esemikose and Hon. Augustine Egbebi were tasked with following up on the traders’ activities.

The success of the Kabba-Bunu outreach is expected to serve as a model for similar initiatives in other parts of Kogi West Senatorial District and the state. As the GOBO program continues to expand, more communities will benefit from its efforts to empower individuals and enhance economic development.