List of Dangerous Loan Apps in Nigeria: Why CBN Warns Against Fake Lending Platforms That Harass Borrowers

In recent years, digital lending has grown rapidly across Nigeria. Many people now depend on mobile loan apps for emergency cash and quick financial relief. However, while some of these apps are legitimate, a growing number of illegal and unethical loan apps have emerged — known among users as “evil loan apps.”

These platforms often operate without approval from the Central Bank of Nigeria (CBN) or the Federal Competition and Consumer Protection Commission (FCCPC). Instead of helping borrowers, they engage in abusive practices such as defamation, blackmail, data theft, and harassment.

If you have ever been shamed online or your contacts received messages about your loan status, chances are you’ve dealt with one of these unlicensed loan apps.

The Dark Side of Quick Loan Apps in Nigeria

Loan apps became popular in Nigeria because they offer instant cash without collateral, making them attractive to salary earners, students, and small business owners. Unfortunately, many of them exploit this demand.

These unethical apps lure people with easy approvals, only to trap them with extremely high interest rates, short repayment periods, and illegal recovery tactics.

Instead of following the rules of ethical debt recovery, they often resort to:

• Sending defamatory messages to borrowers’ friends and family

• Threatening users who default

• Accessing and misusing personal data such as contacts and photos

• Refusing to respond to customer complaints

Such actions are against Nigerian financial regulations, yet these apps continue to appear on the Google Play Store under different names.

List of Evil Loan Apps to Avoid in Nigeria (Latest Update)

Many Nigerians have identified the following apps as dangerous, unethical, or blacklisted by the FCCPC for violating borrower rights. If you come across any of these, avoid them completely or report them to authorities.

List of Reported Loan Apps:

• Fast Money

• 9ja Cash

• Sokoloan

• Add Money

• Aim Loan

• Cash Mama

• Ajeloan

• Nicenaira

• Henloan

• Credit Box

• Neocash

• Secucash

• 9Credit

• Cycle Cash (nicknamed “Devil” by users)

• iCredit

• Lcredit (also called “Lucifer” in loan app circles)

• GoCash (referred to as “Satan” by defamed borrowers)

• KashKash

• NairaPlus

• Zuma Cash

• Pocash

• Tiger Credit

• Tloan

• Naira Cup

These apps have allegedly engaged in harmful practices such as defamation, data breaches, and illegal interest charges. Many users have claimed to receive threatening messages, or seen their names circulated on social media after loan default — a direct violation of Section 17 of the FCCPC Act and Nigeria’s Data Protection Regulation (NDPR).

Why These Apps Are Called “Evil Loan Apps”

The term “evil loan app” started trending on Nigerian social media around 2022, after many victims began sharing their experiences of online shaming. Borrowers reported that once they missed repayment by just a few days, these apps began sending text messages to their contacts with statements such as:

“This person is a criminal who refused to pay loan.”

These messages often contain false information and defamatory language, causing emotional distress and reputational damage.

Aside from defamation, these apps charge interest rates as high as 45% for 7 to 14 days, making repayment nearly impossible for average Nigerians. The combination of short tenures and high interest traps users in a cycle of debt.

CBN and FCCPC Actions Against Illegal Loan Apps

The Central Bank of Nigeria (CBN) and FCCPC have jointly launched a crackdown on unlicensed digital lenders. The government’s goal is to regulate the digital lending sector and ensure consumer protection.

In 2023 and 2024, several apps were removed from the Play Store following investigations by the Joint Task Force on Digital Lending Apps. The FCCPC also introduced the Limited Interim Regulatory/Registration Framework which all loan apps must comply with before operating legally.

Any loan app that has not been registered under this framework is considered illegal and can be shut down or fined for data misuse or harassment.

How to Identify Fake or Evil Loan Apps

Many Nigerians still fall victim because they don’t know how to distinguish legitimate loan platforms from fake ones. Before downloading any loan app, always check the following:

1. Verify Registration with FCCPC or CBN
   Visit the FCCPC website to see the list of approved loan apps in Nigeria. If the app’s name is missing, don’t install it.

2. Check Online Reviews and Ratings
   Most illegal apps have thousands of one-star reviews filled with complaints of defamation or data leaks.

3. Avoid Apps That Request Unnecessary Permissions
   If a loan app demands access to your contacts, photos, or location before approval, it’s a red flag. Legitimate lenders only require your BVN, ID, and basic information.

4. Look Out for Unrealistic Loan Offers
   Beware of apps promising ₦500,000 instant cash with no credit checks. Most use such tactics to lure unsuspecting borrowers.

Legal Rights of Borrowers in Nigeria

Borrowers have rights under Nigerian law, even when they default. Loan apps cannot shame, harass, or threaten users. According to FCCPC regulations, loan recovery must be conducted professionally and privately.

If any loan company sends defamatory messages about you or threatens you, you can report them to:

• FCCPC (Federal Competition and Consumer Protection Commission)
  Website: https://fccpc.gov.ng
  Email: contact@fccpc.gov.ng

• NITDA (National Information Technology Development Agency) — for data privacy violations
  Website: https://nitda.gov.ng

• Google Play Store Feedback — Report the app directly under the “Flag as Inappropriate” section.

How I Broke Free from Evil Loan Apps

Many victims have shared their experiences of being defamed and emotionally abused by these loan sharks. Some, like myself, made the decision to stop paying unlicensed apps that violated their privacy and harassed them.

Once I realized these platforms were not legally recognized by the CBN or FCCPC, I decided to report them and uninstall their apps. Over time, I blocked their messages and regained my peace of mind.

If you’ve been harassed by any of these unethical lenders, know that you are not obligated to repay an illegal loan app that broke the law first. Report them to authorities and focus on rebuilding your financial life through legitimate platforms.

Safer Alternatives to Unethical Loan Apps

If you still need urgent loans, consider using registered financial institutions that operate under Nigerian laws. Some safe options include:

• FairMoney

• Branch International

• Carbon (Paylater)

• PalmCredit

• Okash

• Aella Credit

These apps are registered, transparent, and regulated by the CBN. They also have clear interest rates and repayment options without threatening or defaming borrowers.

As digital lending continues to expand in Nigeria, borrowers must stay alert. Illegal and evil loan apps are everywhere, promising quick money but causing long-term emotional and financial harm. Always verify the legitimacy of any loan provider before submitting your BVN or personal details. The CBN and FCCPC are working hard to sanitize the industry, but consumer awareness remains the strongest weapon. If you’ve ever been shamed or harassed by any of these unethical apps, remember: you can report them, reclaim your peace, and choose safer lending platforms that respect your privacy.