Nigerian Bank Nigeria CBN Central Bank Of Nigeria – Wonderbank Resurface Commence Skeletal Business

Source: Compass, 1 Nov.2010

Barely three months after the Central Bank of Nigeria (CBN) sent hundreds of illegal loans and finance companies (wonder banks) to operational shell following revelations that over N160 billion depositors’ money was trapped in their vaults, a few of them are coming back into the micro credit market ostensibly to have a feel of the market and possibly catch in on the opportunities created by some Microfinance Banks (MFBs) that closed shops consequent upon the revocation of their licences about a month ago. Investigations by the Nigerian Compass indicated that some of the operators now open shops for about four hours daily to tactically avoid being noticed by the regulatory authorities.

A source confirmed that some of the operating companies located along Simbiat Abiola and Obafemi Awolowo Ways, Ikeja “the operators now do fast businesses with traders by meeting them between 11 am and 1 pm daily after which they will re-open to conclude the business of the day between 6 pm and 7 pm. In most cases, they do not flaunt their identities again. They are more careful this time around by making sure that their offices are not turned to a beehive of activities as they used to be before”.

When our correspondent visited one of the offices along Simbiat Abiola Way on Thursday, a lady who claimed to be working in the office next to the Loans Company’s said the owners came there a day ago and closed after staying for about three hours, adding that “that is what they have been doing in the last two weeks. Their customers are the hawkers and sellers who come to them to deposit daily with them”.

Another company visited along Awolowo Way had its office opened but access to the inner part of it was impossible as it was barricaded by an iron burglary proof bar. A young boy spoke to confirmed that the company was opened for business but that “it is only the Manager that can talk about our terms of loans. If you want any information, you can come back to see him tomorrow because he is not around now. A re-visit to the office at the weekend (Friday) revealed that the Manager is hardly in office, leaving only the clerk to attend to enquiries from visitors.

The CBN had last July confirmed that a total of 560,882 claims amounting to N106.9 billion had been submitted by depositors against 440 illegal ’wonder banks’ who capitalized on the high level of ignorance about banking to dupe them. The apex bank had then raised the alarm over the illegal operations of the illegal companies by warning the public to beware of unregistered finance and loans companies within the economy.

Although how widespread the operations is yet to be fully determined but industry analysts say the operators have always targeted urban cities for quick money as the rural dwellers depend more on daily contributions which are being managed by their kinsmen in the local communities or the cooperative societies.

Nigerian Bank Nigeria CBN Central Bank Of Nigeria, World Bank