Legality of the AgreementUnder Nigerian Civil Law, particularly in the context of money lending and microfinance banking, a contract may be considered invalid, unenforceable, or void in the following situations: 1. Illegal or Unlicensed Money LenderAccording to the Money Lenders Act, any money lender operating without a valid license from the relevant state authorities or the Central Bank of Nigeria (CBN) is illegal, making contracts with them unenforceable 2. Unconscionable or Exploitative Term