The Nigerian government, via the Federal Competition and Consumer Protection Commission (FCCPC), is set to issue more regulation for digital lending in 2024.

The regulations will improve loan recovery methods in Nigeria amid rising debtor defaults.

Babatunde Irukera, the Chief Executive Officer of FCCPC, disclosed this on a TV programme.

INTEGRITY NEWS reports that Irukera said while the FCCPC has reduced the incidents of harassment in the industry, there is still a high level of default from Nigerians. According to him, there is a significant level of loan defaults because people must refrain from using unethical and inappropriate loan recovery mechanisms. He stated that the loan apps should find other alternatives to loan recovery rather than embarking on harassment and intimidation.

“We must necessarily do the work no matter how hard it is to find a more sensible way to recover loans because I also agree that if these digital money lenders are unable to recover their loans and drop out of the market, it is a consumer protection problem because of those who need those types of short-term unsecured lending”, Babatunde said.

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