JUST IN: Expert urges Nigeria’s digital lenders to prioritise borrowers’ repayment capacity

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Financial expert Kalu Aja has advised Mobile Money Operators (MMOs) and Digital Money Lenders (DMLs) in Nigeria to stop extending credit to borrowers who cannot meet repayment obligations.

He made this call in a statement shared via his X account on Friday, stressing the need for strict compliance with the Central Bank of Nigeria’s Consumer Protection Regulations

“All loan apps in Nigeria must adhere to the ‘Ability to Repay’ law,” Aja said. “If the borrower cannot repay, do not offer a loan.”

His remarks come in the wake of the Federal Competition and Consumer Protection Commission’s (FCCPC) recent unveiling of new regulations aimed at curbing the excesses of loan sharks and ensuring fair lending practices in the country.

The FCCPC warned that failure to comply with the new rules would attract heavy sanctions. According to the Commission, penalties include fines of up to ₦100 million or 1 per cent of a company’s turnover, as well as the possible disqualification of directors for as long as five years

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