Moneylenders Law In Nigeria: Appraisal of Loan And Interest Recovery
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Date
2024-12
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Lead City University, Ibadan
Abstract
Moneylenders and Money lending over several centuries ago had been dressed in the
‘toga of evil’; described in the most despicable terms, all out of the age-long belief that Money lending (Usury) was immoral, unproductive and the interest or profit unearned. This study seeks to bring to the fore the hardship worked on the modern day practitioners of money-lending and the practice via a robust search into the historical background, other literatures and plethora of court cases that depicts the struggle of moneylenders in court recounting litany of woes of their losses of not only their capital but also of the interests on their loans viz-a-viz the need for money-lending by the overwhelming public demand and its glaring economic importance.
The Moneylenders Law and its provisions is thoroughly appraised for all it is worth in the regulation of the business of Money-lending as to whether it enhances and facilitates or impedes and inhibits the business. The onerous sections of the Law are rigorously analyzed to expose their effects on moneylenders and the money-lending business. Doctrinal Research Methodology was used in the study; historical background of money lending, its evolution from the ancient times through the several eras of development and civilization up to the present age of regulation. Several sources were reviewed; sources such as material and books on money lending; also legal materials such as the Moneylender’s Law of various States of Nigeria and judicial sources such as case laws and judicial precedents applying various provisions
of Moneylenders Law. The research further found that the Moneylenders Law though sufficiently protects the borrowers as per the intendment of the legislators in its promulgation, it puts fetters on the lenders so much so that it impedes the business as most lenders operate informally in the background. The stifling effect of the loss of their loans and interest resulting from the UN-enforceability of their contract was overwhelmingly fatal to their businesses. and to the lenders. The research further found that the moneylenders also need protection as the Moneylenders Law structurally tilted against the lenders; morally biased against the lenders as they are believed to be unscrupulous. The study concluded that Moneylenders’ Law rather than facilitating or enhancing the business, inhibits and impedes its growth as a result of the moral bias expressed in the purpose for the enactment of the first Moneylenders Act in 1900 and the subsequent review in 1927. It is a Law that seeks to protect the interest of the borrowers from unscrupulous lenders’ so much that it ended up putting fetters on the lenders. The Moneylenders also need protection, the study thus recommend the law for a review.
Keywords: ancient times, doctrinal research, era of development and civilization, evolution, facilitating and enhancing, fetters, inhibition, interest protection, impedes, moneylenders, moneylending, moral bias, overwhelmingly fatal, profit-seeking, self-interest, structurally tilted, stifling, supremely moral, toga of evil , unscrupulous lenders, usury
Word Count: 440
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Keywords
ancient times, doctrinal research, era of development and civilization, evolution, facilitating and enhancing, fetters, inhibition, interest protection, impedes, moneylenders, moneylending, moral bias, overwhelmingly fatal, profit-seeking, self-interest, structurally tilted, stifling, supremely moral, toga of evil, unscrupulous lenders, usury
Citation
Kate Turabia