Many borrowers in Nigeria face harassment and false claims from loan apps. Without proper records, it becomes difficult to defend yourself or prove what you actually borrowed and repaid. Keeping evidence of your transactions can protect you from being exploited or overcharged.

3.1 GENERAL PROVISIONS: Institutions shall comply with the following provisions to ensure fair treatment of consumers:

3.1.1 Treat consumers equitably without bias at all stages of the relationship.

3.1.2 Give consumers who meet the minimum legal and non – discriminatory eligibility requirements, equal access to basic services without regard to their social status, physical ability, marital status, gender, age, religion, tribe or ideology.

UNFAIR CONTRACT TERMS: Contracts between Institutions and consumers

shall not contain unfair terms. Contract terms shall be considered unfair

where there is an imbalance in rights and obligations which are detrimental

to the consumer.

Without limitation to the general meaning of an “unfair contract term”, a

contract term is considered unfair if it:

a. Eliminates or limits the liability of an Institution to loss caused to a consumer by misrepresentation, negligence or misleading information on its products or services.

b. Binds a consumer to an obligation while the corresponding obligation on the Institution is conditional.

c. Terminates a contract or alters its clauses without reasonable notice to the consumer.

d. Eliminates or limits Institution’s liability with respect to actions or commitments undertaken by their employees, agents or intermediaries.

e. Allows the Institution the possibility of transferring its rights and

obligations under the contract, where this may reduce the rights of the consumers, without their consent.

f. Eliminates or limits the right of consumers to seek legal redress in the

event of a breach.

g. Allows unilateral change to a contract without stating the circumstances under which the change could be made.

h. Purport to waive any protection provided by a law, regulations or

guidelines.

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To ensure that debt recovery processes are transparent, courteous and fair, devoid of undue pressure, intimidation, harassment, humiliation or threat, Institutions shall.

Engage and give customers notice(s) of outstanding obligations prior to the commencement of a debt collection. Initiate foreclosures only when other recovery steps have been unsuccessful.

Give customers the option of a private sale, to be exercised within 30 days before commencing foreclosure, except where the customer waives the right.

Ensure that the net proceeds from foreclosures are immediately applied to the loan account and customers informed of any balance. Provide customers with a report of the sale of the collateral. At a minimum, the report shall state the process, proceeds, incidental expenses and the net proceeds. Be liable for the actions of their agents engaged for debt collection.

Not engage in any of the following:

a. Contact friends, employer, relatives or neighbours of a customer for any information other than information on employment status, telephone numbers or address, except where: i. ii. the person has guaranteed the loan; or the person has consented to be contacted.

b. Require any of the persons listed in (a) above to offset the debt, except where the person has acted as a guarantor.

c. Make telephone or personal contact with customers between the hours of 9.00pm and 8.00am for the purpose of debt recovery, except with the prior consent of the customer.

Under Nigerian Civil Law, particularly in the context of money lending and microfinance banking, a contract may be considered invalid, unenforceable, or void in the following situations:

1. Illegal or Unlicensed Money Lender

According to the Money Lenders Act, any money lender operating without a valid license from the relevant state authorities is illegal, making contracts with them unenforceable

2. Unconscionable or Exploitative Terms

Contracts with excessive interest rates or hidden fees may be deemed unconscionable and unenforceable under consumer protection laws.

3. Fraud, Misrepresentation, or Coercion

A contract is voidable if the lender used deception, misleading statements, or threats to force a borrower into signing.

Section 19 of the Money Lenders Act states that fraudulent or deceptive lending practices can make a loan agreement unenforceable.

4. Breach of Privacy & Harassment by Loan Apps

Loan apps that invade borrowers’ privacy by sending defamatory messages to contacts violate the Nigerian Data Protection Regulation (NDPR).

5. Absence of a Proper Written Agreement

Under the Money Lenders Act, any loan exceeding ₦20,000 (varies by state) must have a written agreement signed by both parties.

If there is no signed agreement, the lender may not be able to enforce repayment legally.

6. Violation of Loan Tenure & Repayment Rules

CBN guidelines on microfinance lending specify minimum and maximum repayment tenures.

A contract that violates these guidelines may be challenged.

7. Duress or Undue Influence

If a borrower is forced to sign under threats, blackmail, or undue influence, the contract is invalid under Section 20 of the Contract Law of Nigeria.

8. Lending to a Minor

A loan contract with anyone under 18 years old is automatically void under the Nigerian Contract Law.

Many borrowers focus only on getting approved, but very few understand what protections exist under regulations issued by the Central Bank of Nigeria (CBN).

Are you being harassed by loan apps in Nigeria? Do you wonder what really happens if you don’t repay a loan—especially when your rights are being violated?

When you should pay back

1. Those who follow CBN and FCCPC policies
2. Those that will add the maximum of 1% overdue interest a month or at least reasonable interest
3. Those who never defame, harass or cyberbully borrowers

When you should never pay back Loan Apps

1. If you have been defamed by sending derogatory or offensive messages to you personally. They are liable under cybercrime laws.
2. If they are adding daily overdue interest, which is against the CBN policy of 1% monthly.
3. If they show your BVN, NIN, or photos to blackmail you.
4. If they contact people outside your two emergency contacts.
5. If you downloaded the app through links, which means they are not registered with FCCPC or CBN and are fraudsters.
6. If they call you several times a day with robot call, which is against CBN guidelines, NDPR, the right to privacy, and NCC rules, and is a punishable offence.
7. If a loan app refuses to allow loan restructuring with a maximum one-time restructuring fee of 4%, you should not pay a dime. 

CBN has issued these guidelines, and all money lenders must comply.

“They are helping us in times of need” — really?

1. There are laws and policies governing money lending in Nigeria. Anyone who wants to operate a lending business must follow the law. Regular banks and microfinance banks offer similar help too and they operate under Nigerian regulations, not to enrich themselves unfairly.
2. The primary purpose of microfinance is to support businesses, not to destroy them.
3. Anyone who wants to run a loan business must be subject to government policies guiding the sector.
4. What kind of help turns ₦100,000 into ₦250,000 in 3 months because of overdue charges?
5. 30% interest in 7 days is not help; it is extortion and its a criminal offense 
6. Some people say, “Were you forced?” No, people were not forced. But once lending occurs, it becomes subject to the law of the land, not fraudulent loan-app terms. In court, cases are judged based on Nigerian law, not one-sided agreements.

Keep enforcing your liberty

Many people in Nigeria are being harassed, threatened, and intimidated by loan apps. But the truth is, not all loan companies have the legal standing to take you to court. This video breaks down your rights, what the law says, and what these companies can and cannot do.

You will learn:

• The difference between licensed and unlicensed loan companies
• Why some loan apps avoid legal action
• What happens if a loan case actually goes to court
• Your rights as a borrower in Nigeria
• How to handle harassment, threats, and intimidation

We also explain how to identify legitimate financial institutions regulated by the Central Bank of Nigeria and how to protect yourself from illegal lending practices.

Are you being harassed by loan apps? Do they threaten to take you to court? In this video, we expose the truth: Why illegal loan apps will NEVER take you to court and why the law is actually on YOUR side.

If you are a Nigerian borrower being cyberbullied by loan apps, this video is your survival guide. We break down the legal reasons these companies avoid courtrooms, the rights you have as a borrower, and exactly what to do when they threaten you.

⚖️ The Truth Loan Apps Don't Want You to Know

Many online loan apps operating in Nigeria are NOT licensed financial institutions. They operate outside the law, using intimidation to recover money. If any of these cases go to court:

a. Institutions that are DMBs shall notify consumers within 3 days from the first day of default, through the agreed medium that a default charge

would be applied on the account after 7 days from the date the

obligation becomes due.

b. Customers of Institutions other than DMBs shall be notified on the first

day of default, that default charge would be applied on the account

after 3 days from the date the obligation becomes due.

c. Default charge shall be disclosed in customers’ statements of account

separately from the interest charge.