A moneylender is a group who typically offers small personal loans at high rates of interest and is different from banks and financial institutions that typically provide such loans. The high interest rates charged by them is justified in many cases by the risk involved.
They play an active role in lending to people with less access to banking activities, such as the unbanked or underbanked or in situations where borrowers do not have good credit history. They sometimes lend to people like gamblers and compulsive shoppers who often get into debt.
In Nigeria, the regulation of money lending has been delegated to the various States of Nigeria since 1990. The CBN does not directly monitor the activities of these moneylenders, but it regulates the banks, micro-finance, mortgage and other lenders.