Lagos:A financial expert, Mr. Gbemi Adelekan, has advocated for stronger credit infrastructure and enhanced consumer education to bolster digital lending in Nigeria. As the Chairman of the Money Lenders Association, Adelekan emphasized the need for improved credit bureau systems, effective credit scoring, and robust consumer protection mechanisms to sustain the growth of digital lending.
According to News Agency of Nigeria, Adelekan noted that the increasing internet penetration, mobile payments, e-commerce, and online banking are transforming how Nigerians access financial services and are contributing to the widespread acceptance of digital transactions. This shift has led to a growing demand for quick and convenient credit, especially among individuals and small businesses that struggle to secure traditional financing.
Adelekan highlighted that Nigeria’s unbanked population has decreased to 21 percent of the adult population from 36 percent in 2020, with digital lending increasingly complementing conventional financial services. Data from the Nigerian Communications Commission indicates that broadband internet penetration surpassed 53 percent as of January 2026, reflecting a significant expansion of the digital economy.
He further explained that this digital expansion is altering the profile of borrowers, with millennials and Generation Z increasingly adopting technology-based financial solutions for their personal and business needs. The rise of freelance work and small businesses has also escalated the demand for alternative credit sources, particularly for those without a formal employment history required by traditional lenders.
Adelekan identified challenges facing digital lending, including loan defaults, inadequate credit information, and the cost and difficulty of recovering small-value debts. Some borrowers treat loan applications as “free money,” leading to potential increases in interest rates and reduced credit availability for low-income Nigerians.
He urged the government to reinforce credit bureau systems and strengthen credit reporting enforcement, which would aid lenders in assessing borrowers and identifying chronic defaulters. Adelekan also called for improved small claims court systems to expedite and reduce the cost of resolving small-value debt recovery cases.
In addition to regulatory measures to prevent abusive lending practices, Adelekan advocated for more investment in consumer education on loan terms, repayment obligations, and default consequences. He pointed out that effective credit scoring would help deter deliberate defaults and allow lenders to price loans based on borrowers’ creditworthiness.
Adelekan remarked that the Federal Competition and Consumer Protection Commission continues to regulate the digital lending sector, promoting transparency and responsible lending through various regulations. He also noted that fintech companies are utilizing artificial intelligence, big data, and machine learning to advance credit assessments and manage lending risks, potentially offering more personalized financial services.
He concluded by emphasizing the importance of fostering a responsible borrowing and lending culture through strengthened digital and financial literacy, credit infrastructure, and consumer protection mechanisms to ensure digital lending supports inclusive economic participation.