The Federal Competition and Consumer Protection Commission (FCCPC) has disclosed plans to implement stricter regulations governing digital lending practices in 2024.
This decision comes as a response to the escalating default rates observed within the country’s digital lending landscape.
Babatunde Irukera, CEO of the FCCPC, emphasized the necessity of establishing ethical and appropriate loan recovery methods.
Despite a notable reduction in harassment within the sector, he highlighted persistently high default rates as a cause for concern.
Irukera stressed the significance of a more prudent approach to loan recovery, hinting that the upcoming regulations aim to strike a balance between responsible borrowing and lending practices among both individuals and corporations.
Moreover, the anticipated regulations might encompass a wider scope of credit reporting.
This could potentially involve landlords reporting tenants’ fiscal responsibility or creditworthiness to a centralized credit system.
Recent data released by the FCCPC indicates an impressive 80% decrease in instances of harassment and defamatory messages within the digital lending sector.
Irukera also noted that Nigeria’s approach could serve as a learning opportunity for other nations grappling with similar challenges in digital lending, citing countries like India, Kenya, Brazil,
Ghana, and Uganda.
