Expert warns that loan sharks are detrimental to the Nigerian economy

The Federal Government recently allowed the operation of 173 digital lending platforms throughout the country.Okechukwu Unegbu, a financial specialist, has condemned the expansion of "loan sharks" in the Nigerian financial system, calling them a threat to the economy.Unegbu, a former president of the Chartered Institute of Bankers of Nigeria (CIBN), stated this in a Sunday interview with the News Agency of Nigeria (NAN) in Abuja. He asked the Central Bank of Nigeria (CBN) to enable Microfinance Banks (MfBs) to be more effective in their lending role to small businesses, hence eradicating the threat of loan sharks. "These loan sharks are a threat to the economy, and the CBN should do everything in its power to eradicate them." “They give loans to people and when there is a default they call all contacts in their phone to embarrass them; it’s unethical. “The MfBs are better positioned to offer such service, and I’ll urge the CBN to empower the MfBs to be able to carry out their mandate more effectively,” he said.