Federal Government Set to Introduce Stricter Regulations for Opay, Moniepoint, and Digital Lenders in 2024

In a bid to address the rising default rates and enhance loan recovery methods in the country, the Federal Government, through the Federal Competition and Consumer Protection Commission (FCCPC), is gearing up to implement increased regulations in the digital lending space starting in 2024. This development was revealed by Babatunde Irukera, the CEO of the FCCPC, during an interview on Television Continental.

Despite the FCCPC’s efforts to reduce harassment in the sector, Irukera highlighted a concerning trend of high default rates among Nigerians utilizing digital lending platforms. He emphasized the need to abandon unethical and inappropriate loan recovery mechanisms, stating, “You cannot say to me that the only language Nigerians understand is to abuse them. No, I disagree.”

Acknowledging the challenges faced by digital money lenders in the country, Irukera stressed the importance of finding more sensible and responsible ways to recover loans. He expressed concern that if these lenders were unable to recover their loans and dropped out of the market, it would pose a consumer protection problem for those in need of short-term unsecured lending.

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Looking ahead to 2024, Irukera hinted at forthcoming regulations aimed at promoting responsible borrowing and lending practices by both individuals and corporations. He envisioned a broader approach to address the balance between protecting consumers and ensuring the viability of digital lending services.

Highlighting the progress made by the FCCPC, Irukera revealed that harassment and defamatory messages in the sector had been reduced by approximately 80 percent. He emphasized the importance of building a future where even landlords of school premises could report to a centralized credit system about the financial conduct of tenants, students, and parents. This, he believes, will contribute to assessing each individual’s level of fiscal responsibility and creditworthiness.

While acknowledging the challenges faced by Nigeria in the digital lending landscape, Irukera pointed out that other countries, including India, Kenya, Brazil, Ghana, and Uganda, were also grappling with similar issues. He noted that some of these nations were drawing lessons from Nigeria’s initiatives in addressing digital lending challenges.

Source: People Gazette

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