The Rule of Law and Accountability Advocacy Centre (RULAAC) has written to the governor of the Central Bank of Nigeria on the widespread, escalating, and destructive abuses perpetrated by both licensed and unlicensed microfinance banks and digital loan app operators.
The Petition titled, ” Urgent Petition on the Criminal, Unethical, and ‘Satanic’ Activities of Licensed and Unlicensed Microfinance Banks and Loan Apps in Nigeria,” was signed by the Executive Director of RULAAC, Okechukwu Nwanguma, and Accountability Advocacy Centre (RULAAC), on behalf of members of Financial Freedom and LoanSharkReview.
The petition draws attention to the widespread, escalating, and destructive abuses perpetrated by both licensed and unlicensed microfinance banks and digital loan app operators.
Nwanguma said: “Their activities flagrantly violate CBN regulations, the Money Lenders Act, and the Nigerian Data. Protection Act, and the most basic principles of fair and humane lending. Despite CBN’s declared policy of consumer protection, transparency, and fair lending, these operators, including some CBN-licensed Tier 1 microfinance banks, engage daily in practices that are not only unlawful but also inhuman and ruinous to the lives and livelihoods of millions of Nigerians.”
Key Criminal and Unethical Practice
- Exorbitant Interest Rates– Up to 60% within seven (7) days, compared to the legal maximum of 50% per annum.
- Illegal Compound Interest– A ₦50,000 loan ballooning into ₦300,000 within two months through unlawful compounding.
- Harassment, Defamation, and Cyberbullying– Borrowers labeled “kidnappers,” “HIV patients,” “ritualists,” threatened with “RIP” messages, and subjected to sextortion and cyberstalking.
7, AlhajiAfoke Street, Off 31 Road, Gowon Estate, Egbeda, Lagos. Tel: 08064974531 Email: rulaac@rulaac.org. Website: www.rulaac.org
- Distress-Inducing Calls– Parents falsely told their children had died in accidents, triggering trauma, depression, and even medical crises.
- Mass Defamation and Job Loss– Messages sent to employers and contacts, leading to the sack of over 100 borrowers.
- Automated Harassment– Auto-diallers are placing calls every three minutes, amounting to digital torture.
- Lack of Traceability– Many operators hide behind FCCPC registration and CBN licenses but operate without physical addresses.
- Health and Death Toll– At least 10 members of our group have died from suicide and health complications linked to harassment. Thousands more suffer depression and life-threatening conditions.
- Scale of Abuse– Over 1,200loan apps and microfinance operators now terrorize Nigerians.
- Licensed Culprits- Even CBN-licensed institutions like LAPO (≈60% p.a.) and FairMoney (150%–400% p.a.) openly violate guidelines.
Breach of CBN Regulations and Nigerian Laws
These practices contravene:
- The CBN Consumer Protection Framework
- The CBN Fair Lending Policy
- The Money Lenders Act
- The Nigeria Data Protection Act
Nwanguma further said: “They also amount to fraud, harassment, and deliberate falsification of loan records, with figures submitted to CBN often differing from what borrowers actually see. Failure to Align with International Best Practices.”
Nigeria’s inaction leaves it lagging far behind international standards:
7, AlhajiAfoke Street, Off 31 Road, Gowon Estate, Egbeda, Lagos. Tel: 08064974531, Email: rulaac@rulaac.org. Website: www.rulaac.org
- World Bank Principles for Responsible Digital Credit (2021): Require affordability checks, transparent pricing, and ethical debt collection.
- G20 High-Level Principles on Financial Consumer Protection (2011, revised 2022): Call for fair treatment, responsible conduct, and accessible redress.
- AFI Consumer Empowerment Guidelines: Prohibit harmful collection tactics and require privacy safeguards.
- India’s RBI Digital Lending Guidelines (2022): Outlaw harassment, hidden charges, and misuse of data; require borrower protection mechanisms.
- Kenya’s CBK Digital Credit Regulations (2021): Mandate strict disclosure, registration, and penalties for harassment.
These examples show that strong consumer protection in digital finance is achievable and urgent.
Nigeria must not remain an outlier where loan apps weaponize credit to destroy lives.
RULAAC therefore demands that the CBN and the National Assembly oversight committees to:
- Conduct an urgent nationwide audit of all microfinance banks and loan apps (licensed and unlicensed).
- Suspend and revoke licenses of operators engaged in predatory lending, harassment, or defamation.
- Enforce legal interest rate caps and prosecute violators.
- Mandate full transparency in loan terms, rates, and repayment schedules.
- Establish a secure, accessible complaint mechanism for victims.
- Collaborate with FCCPC, NCC, and law enforcement to trace and shut down untraceable operators.
7, AlhajiAfoke Street, Off 31 Road, Gowon Estate, Egbeda, Lagos. Tel: 08064974531
Email: rulaac@rulaac.org. Website: www.rulaac.org
- Rigorously enforce Nigeria’s data protection laws to end privacy violations.
Nwanguma said, “This is no longer a financial regulatory issue alone. It has become a public health emergency, a human rights abuse, and a national security threat. Families have been destroyed, jobs lost, reputations shattered, and lives cut short. This satanic enterprise must not be allowed to continue under the watch of the Central Bank of Nigeria. We therefore demand urgent, decisive, and transparent intervention to restore sanity, protect citizens, and align Nigeria with international best practices in consumer financial protection.”
For and on behalf of the underlisted representatives of the network :
1.Akinwumi Micheal
08119991177
Michealakinwumi82@gmail.com
2.Olumuyiwa Afolabi
08036288548
Tolumuyiwaafolabi@gmail.com
3.Aisha Bulama Ali
bulamaaisha51@gmail.com
09046978753
4.UKO MERCYEHI
Email: godwinmercy164@gmail.com
Phone:08169470575
5.Tosin Makinde
Number: 08120622879
Email: femimakinde@gmail.com
6.Rasheedat Akinwande
Number:08109630895
7, AlhajiAfoke Street, Off 31 Road, Gowon Estate, Egbeda, Lagos. Tel: 08064974531
Email: rulaac@rulaac.org. Website: www.rulaac.org
Email:barike53@gmail.com
7.ALFRED IFEOMA
phone:08067813688
Email: ifeomagloria1981@gmail.com
8.Owolabi Olurotimi Olufunsho
Phone Number:- 08029380552
Email:- olufunshoolurotimi@gmail.com
9.KOLAPO Timileyin Elizabeth
Phone no : 09067826126
Email : Kolapoferanmi8@gmail.com
10.Ifesinachi174@gmail.com
Ifesinachi Somtochukwu paschal 09068400749
11.Rawiya Ahmed Adam
Phone number: 09065490935
Email: rawiyaahmedadam@gmail.com
12.Amuke Jacob
Phone: 08085888634
Email: jacob.amuke@gmail.com
13.Abiodun Aderibigbe
E mail:ahmethyong@gmail.com
14.Lillian iheanacho
08032646768
lillyoge2005@gmail.com
15.Yetunde Shekoni
talk2odunlami@gmail.com
08034509695
16.Aigbe princess Osaivbie
09127662040
aigbeprincess26@gmail.com
17.Sunday peace tanko
Email: peacesundayshina@gmail.com
Phone: 08161314724
18.Email: Bbyharike@gmail.com
Number: 09137305283
Name:Temilade Rokeebat Abdulazeez
19.Aremu Timilehin Samuel
phone: 09056194477
Email: sammytimti@gmail.com
7, AlhajiAfoke Street, Off 31 Road, Gowon Estate, Egbeda, Lagos. Tel: 08064974531
Email: rulaac@rulaac.org. Website: www.rulaac.org
20.Falohun Yemisi.
Email: yemisifalohun@gmail.com
Phone number: 07041167127
21.Mubarak Oyediran Abiodun
Phone: 08061573802
Email : oyediranmubarak7@gmail.com
22.Blessing Osato Egharevba
Phone number 08136249569
Email address eseogheneblessingefe@gmail.com
23.Osadebamwen Idemudia
PHONE: 08185444821
EMAIL: osadebamwenwinter@gmail.com
24.Temitope Sandra olarewaju
08034910986
Nwadinmma1@gmail.com
25.NAME: BOLA AFUSATABOGUNDE
PHONENO:08026584588
EMAIL: afusmama_76@yahoo.com
26.Name: Ifeanyi Victor Obi
Phone: 08102985049
Email: obivictor1986@gmail.com
27.Bilkisu Abdullahi
08038190565
abdullahibilkisu24@gmail.com
28.Name: prudence Henry okafor
Email: prudenceokafor878@gmail.com
Phone no: 08035071733
29.Olarewaju Temilola Damilare
08055972358
temydarey@gmail.com
30.Ngodoo Ihom
09022244486
ngodoopeter@gmail.com
31.Name: WINIFRED ITTAH
PHONE: 08153094700
EMAIL: winifredittah@yahoo.com
32.Patrick Idongesit Michael
08100309871
Patrickidongesit225@gmail.com
7, AlhajiAfoke Street, Off 31 Road, Gowon Estate, Egbeda, Lagos. Tel: 08064974531
Email: rulaac@rulaac.org. Website: www.rulaac.org
33.Emmanuela Duru
07032432415
emmanuelaifeomad@gmail.com
34.Osinubi Rebecca
vcfinigeria@gmail.com
08112771545
35.Olanrewaju Samuel
09033799807
Olanrewajus1971@gmail.com
36.Alfred Precious
Email: alfredprecious007@gmail.com
Phone number: 09153591513
37.Caroline ogedengbe
08060266283,
carolineogedengbe@gmail.com
38.Samson Ochida
phone number: 09065010779
ochidasamson06@gmail.com
39.benedeth Aja oru
Phone number: 09026627541
Email: itumawisdom6@gmail.com
40.Khadija Richifa Ibrahim
Phone number:09039950819
Email: krichifa@gmail.com
41.Ayodele Esther
08081559756
ayodeleesther265@gmail.com
42.Chinenye h Mbonu
08037713202
Mbonuhenrietta268@gmail.com
43.Adekola Itunuoluwa Victoria
07037642753
Vickiesexy71@gmail.com
44.ojodaleo@gmail.com
Ogbadu Ojodale A
45.Gabriel Zita Chinwendu
Email: zitagabriel870@gmail.com
Phone number: 07010402890
7, AlhajiAfoke Street, Off 31 Road, Gowon Estate, Egbeda, Lagos. Tel: 0806497453
