The Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), plans to introduce additional regulations for the digital lending sector in 2024.
These regulations aim to enhance methods for loan recovery amid a surge in default rates.
Mr. Babatunde Irukera, the CEO of the Commission, emphasized the need to address the challenge of loan defaults without resorting to unethical practices.
The forthcoming regulations in 2024 will focus on promoting responsible borrowing and lending practices, seeking a balanced approach to protect consumers while ensuring the viability of digital money lenders in the market.
Irukera envisions a future where even landlords can contribute to a centralized credit system, providing information about tenants, students, and parents’ fiscal responsibility for a comprehensive understanding of creditworthiness.
Despite challenges, the FCCPC has made significant strides in reducing harassment and defamatory messages in the sector, with lessons being shared with other countries grappling with similar issues such as India, Kenya, Brazil, Ghana, and Uganda.
