Nigeria
How to Avoid Loan Scams in Nigeria: Warning Signs and What to Do
Upfront fees, cloned apps and WhatsApp-only lenders. The checks that filter most of them out.
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- Biggest red flag
- Fee before disbursement
- Licence check
- CBN list of licensed lenders
- App permissions
- Contacts and gallery access
- Complaint route
- CBN Consumer Protection
A real lender never asks for a fee first
Advance-fee collection is the defining scam. Legitimate fees are netted from the disbursement, not sent by transfer beforehand.
Check the CBN licence list
Money lenders must be licensed, and the list is public. A name absent from it is either new or not licensed.
Read the app permissions
Contact and gallery access is how defaulters get called. It is normal for licensed apps and a red flag for unknown ones.
Get the total repayment in writing
Flat monthly interest hides the true cost. Ask for the total repayable and compare it to the principal.
VerdictNo fee before disbursement, licence checked against the CBN list, total repayment in writing. All three or walk.
FAQ
Should I pay a fee upfront?▾
Only if it is small and the lender is licensed.
How do I complain?▾
CBN Consumer Protection Department.
Are WhatsApp-only lenders safe?▾
Rarely without a licence check.
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