S
SmartlyJobz Money
Reading goal: 10 pages

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.

6 min read · step 48 of 10

Series: card and loan debt, in order

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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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