Money Lenders Association Calls for Stronger Credit Systems

Gbemi Adelekan, the chairman of the Money Lenders Association, has called for enhanced credit infrastructure and consumer education to sustain the growth of Nigeria's digital lending market. He emphasized the importance of improved credit bureau systems, effective scoring, and stronger consumer protection.

With increasing internet penetration and mobile payments, demand for quick credit is rising, particularly among individuals and small businesses that lack access to traditional financing. Nigeria's unbanked population has decreased to 21% from 36% in 2020, while broadband penetration exceeded 53% as of January 2026.

Despite the growth, challenges such as loan defaults and inadequate credit information persist. Adelekan noted that some borrowers treat digital loans as 'free money,' impacting lenders' cash flow and leading to higher interest rates.

He urged the government to strengthen credit reporting systems and small claims courts for efficient debt resolution. Additionally, he advocated for greater consumer education on loan terms and repayment obligations, and commended the Federal Competition and Consumer Protection Commission for its 2025 regulations promoting responsible lending.