Microfinance firm disappears with client funds, victims mourn losses

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There was an outcry at Mowe Police Station in Ogun State last Thursday when residents, believed to have been defrauded by a microfinance company, took storm the post.

PUNCH Metro learned that the company promised to provide loans to customers after deposits, but fled after receiving payments from many people in the area.

When our reporter went to the police station, some of the victims were seen wailing at the door.

A victim, Funmilayo Adebayo, said: "About three of us jointly contributed 50,000 naira which we paid them because we wanted a loan of 150,000 naira. I suffered during my pregnancy to get the money I gave them. Now that I'm in bed and need it, the money has been lost."

Another victim, who identified himself as Nike, said he needed a loan of 200,000 Naira and paid the company 24,000 Naira.

"Mine isn't even much compared to what other people gave them. There was a woman crying at Lotto yesterday that she gave them 200,000 naira for one 1 million naira loan,” she added.

Another resident, Morenike Ajayi, who said she applied for a loan of N200,000, said the money was intended to boost her restaurant business.

She said, "All my hope was on that money because I withdrew the money left in my account, borrowed more money from one of my friends hoping that once I get the loan, I will pay his back and put the rest in my business. Now these crooks have ruined all my plans. Where do I start?"

In the company's loan slip seen by our reporter, it was stated that for a client to access a loan of N50,000, a deposit of N5,000 will be paid; N12,000 for N100,000; N18,000 for N150,000 and N24,000 for N200,000.

Ogun State Police Public Relations Officer Abimbola Oyeyemi said an investigation is ongoing into the matter.