MY FRIEND THE SHYLOCK - MONEY-LENDERS AND THEIR CLIENTS IN SOUTH-WESTERN NIGERIA

As older ways of raising credit declined or were re-defined, the acqui ring of loans from a specialized group of money-lenders flourished in colonial Western Nigeria. Money-lenders charged exorbitant interest an d insisted on loan repayment at a fixed date. Borrowing from the modem banking system, the money-lenders prepared legal documents and requir ed surety. Debt recovery was generally painful to defaulters; they wer e humiliated, harassed, and had their property confiscated. The practi ce generated many conflicts. The debtor was generally unhappy, especia lly if the money was used for consumption. Lenders cheated with high i nterest rates and other charges and promoted for their own ends indisc riminate lending to poor and vulnerable people. To minimize conflicts and protect debtors, the colonial administration decided to regulate t he trade with ordinances, especially the Moneylenders' Ordinance of 19 38 which set limits to interest and forced lenders to obtain licences. In general, lenders subverted the ordinance, creditors and debtors be came more cunning as documents were falsified to protect lenders, and those who needed money continued to accept harsh terms.