27/02/2026
CAN A GUARANTOR BE ARRESTED BECAUSE THE BORROWER DEFAULTED IN REPAYING A LOAN?
NO.
Many people panic when someone they guaranteed fails to repay a loan. Some even receive threats like,
"If he does not repay the loan, we will arrest you." "If he absconds, we will arrest you".
That is intimidation. Not law.
A loan transaction is a CIVIL matter.
When you stand as a guarantor, you are promising to repay the debt if the borrower defaults. Your obligation is financial, not criminal.
If the borrower fails to pay, the proper remedy is for the lender to sue for recovery of the debt and not to use the instrumentality of the police to recover the loan.
It is not a crime to owe money.
Under Nigerian law, the court have held in a plethora of cases that the police are not debt recovery agents. Arrest cannot be used as a tool to enforce repayment of a civil debt.
Section 7 of the Administration of Criminal Justice Act (ACJA) 2015 expressly prohibits arrest in lieu. A guarantor cannot be arrested simply because the borrower defaulted.
However, where there's evidence of fraud, obtaining money by false pretence, or conspiracy, that becomes a criminal matter and the police can effect arrest on the parties involved. In that situation, arrest is based on the alleged crime, not merely on default to repay a loan.
Mere inability or failure to repay a loan does not justify arrest.
HOW CAN THE CREDITOR RECOVER HIS MONEY:
🥢The creditor can sue both the borrower and the guarantor.
🥢The court can order repayment of the loan.
🥢The guarantor may be made to pay if the borrower fails.
That is civil liability and not criminal liability.
Arresting a guarantor over a simple loan default is unlawful.
Know your rights.
Not every threat is backed by law.
Stay informed.
Stay protected.
Stay Legally Wise
