NIGERIA MICRO-FINANCE BANKS. NIGERIAN POLICE AND THE ENFORCEMENT OF MONEY LENDERS LAWS OF NIGERIA.

NIGERIA MICRO-FINANCE BANKS.

NIGERIAN POLICE AND THE ENFORCEMENT OF MONEY LENDERS LAWS OF NIGERIA.

As economic hardship bits, Nigerians has resorted to borrowing money even to eat, pay rent, buy necessities of life, education for their wards etc.

This is encouraged instead of committing suicide as the economic recession of the present administration kick off the worst type of suicide, selling of children for food, known in the history of this nation.

I do not know whether Nigerian Police are so idle in their offices that they have resorted to converting civil and contract matters to criminal cases.

The activities under Money Lenders Act or Laws are contractual and so civil in nature, but many Courts are now being bombarded with borrowers who defaulted in payment of the sum borrowed. Virtually all Micro-finance Banks are now arraigning defaulters under our criminal justice system.

Not quite long I was called upon to rescue a woman detained by  Police on the complain of a Micro-finance for three days for not meeting up with her payment plan.

My question is, why resort to illegal and desperate way of dept recovery?

To me it is either the lenders are ignorant of the law, or they know the law and decided to flout it.

It also trouble my heart that some of our courts admit this cases and give stringent bail conditions that allow the borrower to remain in detention for weeks and months before they are released on bail. The said borrower end up borrowing more to get bailed out of detention.

Why do these lenders resort to desperation to recover their loan? Is it that they no longer trust the borrower whom they supposed to have had enough scrutiny before given out the loan?

The way and manner these lenders show desperation by using Police to harass, intimidate, locking up in toilets, and taking laws into their hands by confiscating the borrower’s properties without court order is irritating. Is it not foolish that these lenders will lure people to come and borrow with one kind of foolish promo and after the people borrowed the money, they will claim that they no longer trust the borrower, either because they did not make enough investigation on the borrower personality data, thereby converting their ignorant to punishment to borrower.

If every Micro-finance did enough investigation on the personality they want to part their money to, there will be no need to use harassment, intimidation, arrest and detention, they will sue in a civil court and even recover damages at the end and save the face of their business.

As it stands now, if it is in a civilize world, nobody will patronize them, but for the had times, they are still getting patronage and they think that these illegalities will continue forever.

I call on all Micro-finance operating in Nigeria to be reasonable. Some of your customers are committing suicide due to the way and manner you go about mishandling them. Do your investigation well before giving out loan and that will help you to locate the borrower easily and will also help you to approach civil courts or arbitration centers. When you see a bad dept, make sure you have a pro-rata plan of how to collect your money at the ease of the borrower than losing all, and not by using force.

The in house lawyers in these bank should be up and doing in proffering a saving advise to these Micro-finance and their various customers or face Nigerian Bar Association’s disciplinary tools soon, for we cannot stand by and watch all these bankruptcy of knowledge.

All Microfinance situated at Ikotun-Egbe areas of Lagos State should take note.