Online loan defaulters in Nigeria and how they default loan are two major issues that are fast becoming a huge problem across the country currently. With the increase in the number of digital lending platforms and loan apps in Nigeria especially which guarantees quick cash within a few minutes, it has become very easy for anyone with a smart phone to get a quick loan even if you have a bad credit score.
Loan default occurs when a borrower fails to pay back a debt according to the initial arrangement. In the case of most consumer loans, this means that successive payments have been missed over the course of days, weeks or months. And this has become rampant resulting to an upsurge of loan defaulters in Nigeria.
Online Loan Defaulters In Nigeria And Fake Loan Apps Scamming Nigerians
As much as we have many loan defaulters in Nigeria, we equally have quite a number of fake loan apps scamming and defrauding Nigerians. Some weeks ago QUICK LOAN ARENA published a well publicized article about the existence of fake and fraudulent lending apps in Nigeria and warned every borrowers to abstain from patronising them.
Why Online Loan Defaulters In Nigeria Are Increasing
The problem mostly lies in either the inability or lack of will to make repayment. Most people who take easy loans online find it difficult to pay when it’s due. Some believe it is free money, while others just abandon their obligation and face the consequences. They express hesitation because they are under no pressure. They also find it difficult paying back because they never used collateral while taking the loans. It would amaze you the number of online loan defaulters in Nigeria currently.
These upsurge of loan defaulters in Nigeria has resulted in the loan companies finding new methods to get people to pay their loans. Companies have to go as far as calling friends and family, sending messages and posting on the defaulters social media handles to try and get them to pay. Sometimes, this method works, sometimes it doesn’t.
According to an article published by African Business, a large number of businesses that took advantage of the CBN’s directive to banks to lend more to small businesses or be penalised have found themselves in difficulties over paying back the loans following the arrival of Covid-19. The banks have loaned over $9.06bn to businesses within one year. Many loan defaulters in Nigeria have arisen from this crisis.
Why Online Loan Defaulters Are Unable To Pay Back Loans
Michael Stephens, who runs a gift items and souvenir business, a debtor and one of the loan defaulters in Nigeria. His account has been flagged for noncompliance, said his business suffered a major setback earlier this year following a five-week economic lockdown due to the Covid-19 pandemic.
“For five months, we could not even open our office and there were staff salaries to pay. As we speak now, we have still not started business fully. It’s a trying time for us because the interest on the loans has not been suspended and the tenor of the facility has elapsed,” he said.
FBN Holdings Plc, United Bank for Africa Plc and Zenith Bank Plc expanded their loan books by the equivalent of about $1bn each in order to dodge heavy penalties from the CBN, S&P Global Market Intelligence calculations showed.
CBN Insists Online Loan Defaulters and other defaulters In Nigeria Must Repay Their Loans
Ike Chioke, managing director, Afrinvest West Africa Limited, said many banks expanded their loan base following the CBN’s directive last year that they lend at least 65% of their deposits to customers in a new Loan to Deposit Ratio (LDR) plan, or be sanctioned through restriction on their deposits. Many of the loans have since gone bad and the banks are now relying on the Global Standing Instruction (GSI) policy instituted by the CBN to recover their funds despite losses caused to businesses by the Covid-19 pandemic.
The CBN insists that borrowers must pay back. “The CBN will not allow people to borrow money and refuse to pay again. That era has gone. If you take money, you will pay back the loan. If you borrow money and refuse to pay, we will take your money wherever you are keeping it,” CBN governor, Godwin Emefiele said.
How Lending Platforms Share Pictures Of Loan Defaulters In Nigeria
The practice of public shaming online debtors and sharing pictures of loan defaulters in Nigeria across social media and with their contacts is an unethical one that began with the digital evolution and advent of fintechs across the nation. We have published several articles against this illegal practice by fake loan apps in Nigeria.
The ability of securing loans within minutes just after a few clicks in digital lending apps, and particularly without collateral made loan apps a darling of many people. What the borrowers did not know, however, was that the hundreds or thousands of contacts (as the case may be) on their mobile phones, was the ultimate collateral.
The numbers stored on their phones and accessed by the loan apps, were the lenders’ insurance against any inability to repay. In essence, their reputation and dignity or whatever was to be left of it was to be used in guaranteeing repayment of loans. And the platforms go as bad as sharing pictures of loan defaulters in Nigeria, exposing their BVN and vital banking details to the public.
Top 35 Loan Apps That Share Pictures Of Loan Defaulters In Nigeria
VERY SERIAL several reportage have revealed many culprits loan apps that share pictures of loan defaulters in Nigeria. Some of the lending applications that involve in the unethical practice of sharing pictures of loan defaulters in Nigeria include: 9Credit, LionCash, NKash, ForNaira, CycleCash, Cashrain, Mikoloan, Supercash, Xcredit, iCoin, CashLion, GoCash among many others.
The full list of such apps include:
- 9credit
- LionCash
- Nkash
- ForNaira
- CycleCash
- Cashrain
- Mikoloan
- Supercash
- Xcredit
- ICoin
- PalmCredit
- CashLion
- GoCash
- EasyCredit
- Easi Moni
- KashKash
- Speedy Choice
- BorrowNow
- FastMoney
- GetCash
- Gotocash
- Sokoloan
- AngelLoan
- LCredit,
- 9credit
- Nkash
- ForNaira
- CycleCash
- Cashrain
- Mikoloan
- Supercash
- Xcredit
- ICoin
- PalmCredit
Borrowers, Victims Recount Tortuous Experiences Of Loan Companies Sharing Pictures Of Loan Defaulters
Loan apps on the Google Play Store that offer short-term loans are mandated by Google policy rules to give borrowers no fewer than 60 days from the date of issue to repay any loan. The internet giant forbids a loan app sharing pictures of loan defaulters in Nigeria or anywhere else. Still the digital lenders persist in this unethical practice. Loan recovery agents have been declaring defaulters dead, calling them child rapist, paedophiles, terrorists and all sort of unprintable names. They also circulate the defamatory messages to their family, friends and contacts.
“It is not a good experience,” said Jane, who defaulted on a loan. After the lender reached out to her phone contacts, to console herself, she said in a mixture of Pidgin and English; “Who no dey borrow? Even Nigeria dey borrow, it is a normal thing. But they should have focused on me paying their money and not reaching out to my contacts.” While she may have been humiliated beyond her imaginations, the psychological impact was a feeling of nothing else to lose.
How Debt Recovery Agents Operate And Share Pictures Of Loan Defaulters In Nigeria
A debt collector identified as Tobilola who works for LCredit with first-hand knowledge of their operations was quoted by The ICIR that the recovery agents are split into five teams with a team leader assigned to each. The teams are headed by a team leader who assigns customers to the debt collectors based on the duration of time they have defaulted on their loans.
“We are divided into five groups. Most debt collectors prefer the first to the third team because their focus is on short-term overdue loans, which are easier to retrieve than long-term loans.
“We are assigned 400 customers per week to each debt collector at the call centre, and they don’t care whatever you do to recover overdue loans from customers,” he said.
There is no official number of how many loan firms exist in Nigeria; however, debt collection is a critical part of their operations.
The agents get a weekly bonus of three per cent of the total amount they recover if they meet their weekly target.
The monthly salary of a debt collection agent at LCredit is N50,000, while the top three performing agents for the week receive between N10,000 to N15,000 as an incentive.
He said loan defaulters of LCredits often asked for more time to escape the constant harassment, but they would continue anyway with the stringent unethical loan recovery method with eyes on the bonus.
“The team leaders always threaten to sack us if we don’t meet the target, and when they verbally abuse us, we tend to transfer the aggression on the customers using any means possible to recover the company’s money,” he said.
Some Pictures Of Loan Defaulters In Nigeria Shared To Contacts, Friends And Families Of Borrowers And The Public
With all the enforcement and clampdown by Nigeria’s regualtory authorities and policy enforcement by Google Play Store where these offending apps are hosted, the platforms are so daring and continue to publicly disgrace and harass and threaten their customers and share pictures of loan defaulters in Nigeria.
Some of such pictures
Analysis Of Loan Defaulters in Nigeria
Vice President Yemi Osinbajo, in 2019 set up a task force with a mandate to devise a strategy to recover the N5 trillion owed to the Assets Management Corporation of Nigeria (AMCON) by top loan defaulters in Nigeria.
The agencies tasked to go after the loan defaulters in Nigeria are Economic and Financial Crimes Commission (EFCC), Nigerian Financial Intelligence Unit (NFIU), the Independent Corrupt Practices Commission (ICPC) and the ministry of justice.
According to AMCON, the top 20 loan defaulters in Nigeria owe 67% of the N5 trillion debt.
Vice President Yemi Osinbajo says the federal government has set up a task force to monitor the top 20 debtors on the list of the Asset Management Corporation of Nigeria (AMCON).
The federal government says it has renewed efforts to recover the N5 trillion debt owed by the loan defaulters and chronic debtors.
List of Top 20 Loan Defaulters In Nigeria And Their Loan Amount
According to a list released by AMCON in October 2019, some of the top 20 loan defaulters in Nigeria include but not limited to: Capital Oil & Gas Industries Ltd, Ifeanyi Ubah, NICON Investments Ltd, Jimoh Ibrahim, Bi-Courtney Limited (MMA2)Wale Babalakin (SAN) Josepdam & Sons Limited among others.
- Capital Oil & Gas Industries Limited Ifeanyi Ubah 115,952,152,265.92
- NICON Investments Limited Jimoh Ibrahim 59,544,633,980.31
- Bi-Courtney Limited (MMA2)Wale Babalakin (SAN)40,798,422,374.02
- Josepdam & Sons Limited Late Mrs. Josephine, Damilola Kuteyi, Saheed KuteyiGaniyu Kuteyi 39,056,674,951.55
- Tinapa Business Resort Cross River State Government 36,006,319,844.68
- Home Trust Savings Chukwukadibia Ajaegbu, Funmu Ademosun 30,626,243,344.71
- Geometric Power Limited Prof. Barth NnajiNnaji AgathaObibuaru ElumaAnike PaulNwobodo Benjamin Chukwuemeka
Dozie Chijioke
Akpe Austine
Nnaji Okechukwu
UBA Trustees Limited
Kunoch LimitedDiamond Capital & Financial Market Limited 29,844,500,896.77
- Roygate Properties Limited Wale Babalakin (SAN) Agumadu John Alarape Olabode Okhaleke Ndudi 28,137,176,532.32
- Shell Development Petroleum Company – West Multipurpose Co-operative Society Limited (SPDC)Shell Staff, represented by Ikponmwosa Ogiemuda26,474,541,188.17
- Anyiam Osigwe LimitedAnyiam-Osigwe Dorothy Chinyere20,523,322,350.29
- Platinum CapitalObire RichardFrancis Atuche20,378,820,507.19
- Flotsome Investment LimitedOboden IbruTejiro Ibru20,218,703,550.96
- Lonestar DrillingLate Chief IdisiMargaret Idisi20,207,979,803.22
- Petrologistics LimitedUgoji Egbujo19,576,962,565.35
- Lorna Global ResourcesH.E. Chimaroke Nnamami18,919,109,352.85
- Hosanna Properties LimitedAnionye ChikaObi Ike C.18,059,895,396.27
- Minaj Holdings Limited, Ajegbo Mike Nnayeluchudihu, Luke Chidi Chudihuilogu, Miller Gregrey, Ethridge Kyle
Attueyi Joe
Oladele Afolabi
Okpere Kisito
Kokoricha Paul
17,306,900,257.66
- Afrijet Airlines LimitedInoelle Willam BarryCarr Collin13,122,022,439.57
- Petroleum Brokers LimitedWilcox Awopuolagha13,076,314,937.26
- Hotel De Island; Kasmal Properties; Island Autos & NacoilKashamu Prince Buruji13,015,595,907.67
List Of Top 20 Loan Defaulters In Nigeria In Tabular Format
| S/N | Obligor Name | Main Promoter(s) | Current Exposure |
| 1 | Capital Oil & Gas Industries Limited | Ifeanyi Ubah | 115,952,152,265.92 |
| 2 | NICON Investments Limited | Jimoh Ibrahim | 59,544,633,980.31 |
| 3 | Bi-Courtney Limited (MMA2) | Wale Babalakin (SAN) | 40,798,422,374.02 |
| 4 | Josepdam & Sons Limited | Late Mrs. Josephine Damilola KuteyiSaheed KuteyiGaniyu Kuteyi | 39,056,674,951.55 |
| 5 | Tinapa Business Resort | Cross River State Government | 36,006,319,844.68 |
| 6 | Home Trust Savings | Chukwukadibia AjaegbuFunmu Ademosun | 30,626,243,344.71 |
| 7 | Geometric Power Limited | Prof. Barth NnajiNnaji AgathaObibuaru ElumaAnike Paul
Nwobodo Benjamin Chukwuemeka Dozie Chijioke
Akpe Austine Nnaji Okechukwu UBA Trustees Limited Kunoch Limited Diamond Capital & Financial Market Limited |
29,844,500,896.77 |
| 8 | Roygate Properties Limited | Wale Babalakin (SAN)Agumadu JohnAlarape OlabodeOkhaleke Ndudi | 28,137,176,532.32 |
| 9 | Shell Development Petroleum Company – West Multipurpose Co-operative Society Limited (SPDC) | Shell Staff, represented by Ikponmwosa Ogiemuda | 26,474,541,188.17 |
| 10 | Anyiam Osigwe Limited | Anyiam-Osigwe Dorothy Chinyere | 20,523,322,350.29 |
| 11 | Platinum Capital | Obire RichardFrancis Atuche | 20,378,820,507.19 |
| 12 | Flotsome Investment Limited | Oboden IbruTejiro Ibru | 20,218,703,550.96 |
| 13 | Lonestar Drilling | Late Chief IdisiMargaret Idisi | 20,207,979,803.22 |
| 14 | Petrologistics Limited | Ugoji Egbujo | 19,576,962,565.35 |
| 15 | Lorna Global Resources | H.E. Chimaroke Nnamami | 18,919,109,352.85 |
| 16 | Hosanna Properties Limited | Anionye ChikaObi Ike C. | 18,059,895,396.27 |
| 17 | Minaj Holdings Limited | Ajegbo Mike NnayeluchudihuLuke Chidi ChudihuiloguMiller GregreyEthridge Kyle
Attueyi Joe Oladele Afolabi Okpere Kisito Kokoricha Paul |
17,306,900,257.66 |
| 18 | Afrijet Airlines Limited | Inoelle Willam BarryCarr Collin | 13,122,022,439.57 |
| 19 | Petroleum Brokers Limited | Wilcox Awopuolagha | 13,076,314,937.26 |
| 20 | Hotel De Island; Kasmal Properties; Island Autos & Nacoil | Kashamu Prince Buruji | 13,015,595,907.67 |
AMCON Submits Fresh List of Top 1000 Loan Defaulters In Nigeria To National Assembly
Meanwhile the Asset Management Corporation of Nigeria reported end of last year, 2021 that it had submitted a fresh list of its top 1,000 list of loan defaulters in Nigeria for 2021/2022 to the National Assembly as part of the strategy to intensify its debt recovery drive.
AMCON put the total current exposure the loan defaulters and chronic debtors on all eligible bank assets at N4.4tn, saying the market values of the assets had significantly reduced below the valuation at the point of purchase due to the socio-economic downturn, making it extremely difficult to consummate sales transactions.
It said in a statement the list of the “recalcitrant obligors” (loan defaulters in Nigeria) was submitted to the members of the House of Representatives Committee on Banking and Currency at a retreat of the committee in Lagos.
A top source quoted by Punch Newspaper says the 1,000 loan defaulters in Nigeria were responsible for 90 per cent of the total debt of N4.4tn, translating to N3.9tn.
The source said, “The 1,000 debtors (loan defaulters in Nigeria) are those responsible for the big-ticket debts. Many prominent Nigerians across different sectors of the economy are on the list. These people and their companies are responsible for 90 per cent of the total current exposure on all eligible bank assets put at N4.4tn.”
The AMCON Act provides for the extension of the tenor of the resolution cost fund and grants access to the Special Tribunal established by the Banks and other Financial Institutions Act 2020, which confers on AMCON the power to, among others, “take possession, manage, foreclose or sell, transfer, assign or otherwise deal with the asset or property used as security for Eligible Bank Assets, and related matters.”
The Chairman of the House of Representatives Committee on Banking and Currency, Mr Victor Nwokolo, who received the list of loan defaulters in Nigeria from the Managing Director/Chief Executive Officer of the corporation, Mr Ahmed Kuru, was quoted as saying that the committee called for the list so that the National Assembly would know all “those holding the country to ransom.”
He said this would enable the lawmakers to meet with relevant agencies of the Federal Government on how to further deal with the debtors to ensure the realisation of AMCON’s mandate in the overall interest of the Nigerian economy. According to him, the National Assembly is considering punitive measures in dealing with those whose names made the top 1,000 AMCON debtors’ list.
What happens if online loan is not paid in Nigeria?
If your online loan is not paid in Nigeria, the loan app where you borrowed the money may publish your name, BVN, photo, profile details, phone number to the public and your contact details. Lending app downloads your contact numbers to their database when you borrow money from them and may use it to blackmail you and publicly shame you if you default in your loan repayment.
What happens when you default on a loan in Nigeria?
When you default on a loan in Nigeria, the loan app that borrowed you money may publish your name, BVN, photo, profile details, phone number to the public and to your contact details to shame and blackmail you to make repayment. It’s better not to borrow money or make repayment when you borrow than be allowed yourself to be shamed publicly.
What happens if you don’t pay back a bank loan in Nigeria?
When you don’t pay back a bank loan in Nigeria, AMCOM, the Asset Management Corporation of Nigeria may publish your name in national newspaper if you are among the top list of loan defaulters in Nigeria. This is after the bank has warned you and requested that you repay your loan.
Can you go to jail for defaulting on a loan in Nigeria?
When you default a loan in Nigeriua, you may not immediately go to jail if you are not prosecuted but you can be publicly shamed and your name published in national newspaper. If you default on a loan app, the platform can publish your photo and personal details to your contacts and public to shame you and pressure you to repay. However if you default on a bank, your name may be published if you are among the top loan defaulters.
What is the punishment for personal loan defaulters?
When you default on a personal loan in Nigeria, you may not immediately go to jail if you are not prosecuted but you can be publicly shamed and your name published in national newspaper. If you default on a loan app, the platform can publish your photo and personal details to your contacts and public to shame you and pressure you to repay
How Online Loan Defaulters In Nigeria Are Shamed And Defamed By Digital Lending Apps
Find below how a loan app used the data of an online loan defaulter and defamed him publicly to all his contact list and to the general public.
ATTENTION TO THE GENERAL PUBLIC ON THE FRAUDULENT ACTIVITIES OF MR TAIWO ORONIFEMI
Good day, please be informed that Mr Taiwo Oronifemi with a phone number 0810000002 is indebted to a loan company and has refused to pay. He has chosen to ignore the various calls and messages from the loan company, and has been on the run ever since. Kindly inform him that he will be reported to the Economic And Financial Crime Commission if he doesn’t pay back his loan.
KINDLY CONTACT THE PERSON TO TAKE OFF YOUR NAME FROM THE GUARANTOR’S LIST AS YOU WILL ALSO BE INVESTIGATED AND BE TAGGED AN ACCOMPLICE TO FRAUD IF YOU DO NOT DO SO. TELL MR TAIWO TO MAKE PAYMENT TODAY ELSE THE DETAILS WILL BE SENT TO ALL SOCIAL MEDIA PLATFORMS.
NOTIFICATION OF FRAUDULENT ACTIVITIES OF MR ADEDIRAN BAYO
This is to inform the general public that Mr Adediran Bayo has breached the contract he has with a long company. He borrowed an amount of money from this company and has refused to pay. All efforts to reach him have proved abortive as he has been in hiding.
KINDLY INFORM HIM TO PAY BEFORE THIS MESSAGE IS POSTED EVERYWHERE ON SOCIAL MEDIA. HE WILL BE REPORTED TO THE EFCC IF HE FURTHER DELAYS PAYMENT. YOU RECEIVED THIS MESSAGE BECAUSE HE MADE YOU A GUARANTOR WHICH WILL MAKE YOU AN ACCOMPLICE IF HE IS REPORTED TO THE EFCC.
KINDLY NOTE THAT THIS MESSAGE IS NOT A SCAM, SHOULD INCASE YOU NEED PROOF TO SUCH ALLEGATION, WE CAN PROVIDE IT.
Good day, please be informed that Adekunle Oluwafemi Olowookere with phone number 08167648882 is indebted to a loan company and has refused to pay, kindly notify him/her to avoid being publish as a criminal FASTMONEY
KINDLY CALL THE PERSON TO TAKE OFF YOUR DETAILS FROM THE INVESTIGATION PROCEDURE BECAUSE WE ARE PROVIDED WITH YOUR DETAILS, KINDLY HELP INFORM THE CLIENT TO MAKE PAYMENT TODAY ELSE, CLIENTS DETAILS WILL BE SENT TO ALL SOCIAL MEDIA PLATFORMS
Often, we get messages like the ones given above from different individuals telling us a person on our contact list has taken a loan. This shows the increasing rate of loan defaulters in Nigeria.
The central bank of Nigeria has also stepped in to address the problem of loan Defaulting. Loan defaulting affects the banks as it makes them run at a loss which makes it difficult for them to function optimally on the loan run.
The CBN has created a website where you can check if a person has a bad credit score before giving him a loan. You can also check his transactions history, his loan history and if he is currently defaulting on any loans. This step by the CBN is to prevent this problem from escalating any further.
Consequences of defaulting a loan
1. Bad credit score
This is the first consequence of defaulting a loan. Having a bad credit score is not good as it affects you in the long run. With a bad credit score, some companies might reject working with you as having workers with a bad credit score is a dent to the image of the company.
2. Blacklist
This is something every loan defaulter should try to avoid by paying their loans in time. If you end up being blacklisted, it prevents you from accessing a lot of opportunities such as further loans from small and big institutions, grants, and even Visas. If you intend to apply for a visa overseas, you’ll not be granted as long as you are on the blacklist.
You might also be prevented from leaving Nigeria till you pay back the loan. Furthermore, you won’t be removed immediately you pay, it takes a while before your name can be erased from the list.
Conclusion
Loan default generally and speicifically loan defaulters in Nigeria has become a huge problem. However, hopefully with the steps taken by the CBN and the access to the list of loan defaulters, this problem might just be coming to an end. QUICK LOAN ARENA will be coming up with a comprehensive list of alleged loan defaulters in Nigeria once CBN unveils the list.
Try as much as possible to pay your loans as scheduled to prevent your name being included in the list.
