Nigerians Needs to Improve Borrower-Lender Relationship, Says CEO of Consumertrics

Yinka Kolawole in Osogbo

Consumertrics, a leading advocacy firm on consumer rights and protection, has advocated for the need to improve borrower-lender relationship, particularly in the digital space.

Speaking at a press conference, the Chief Executive Officer of the firm, Muyiwa Ayojimi, said best practices needed to be developed and enshrined within the borrower-lender space.

Ayojimi said there was an urgent need by the Central Bank of Nigeria (CBN) to emplace effective regulation and supervision of the loan sharks operating in the country and the Nigeria Data Privacy Bureau in collaboration with the NCC to protect the privacy of consumers.

He lauded the recent interventions by the Federal Competition and Consumer Protection Commission (FCCPC) to rein in on the loan sharks over the deplorable act.

According to him, “That more Nigerians can now access easy and quick credit through the digital lenders is commendable. Importantly, the growing number of loan sharks suggests a considerable credit market, which therefore calls for a structuring that centres around balancing credit access with consumer protection.”

He added that resorting to public shaming of debtors is usually traumatic for debtors and could lead to their taking life-threatening decisions.

The firm boss added that both borrowers and lenders have specific obligations to fulfil before and after consummating a loan facility in line with globally acceptable guidelines on Financial Consumer Protection.

Ayojimi said the development is why Consumertrics is holding its maiden advisory series with the theme: ‘Responsible Borrowing and Lending: Balancing Access to Credit and Consumer Protection in Nigeria Digital Economy’, taking place today at The Zone Tech Park, Gbagada in Lagos.

Also a keynote address would be delivered by Mr. Babatunde Irukera, the executive vice chairman/ CEO of FCCPC.

However there would be three panel sessions with sub-topics on ‘Responsible Borrowing and Lending, Ensuring Trust and Transparency in Lending and the Importance of Protecting Borrowers against Data Breach and Fraud’.

Other key speakers and panelists are Femi Daniel, Regional Privacy counsel, (Eastern Europe, Middle East, and Africa) for Mastercard; Dr. Jamelaah Sharieff-Ayedun, MD, CreditRegistry; Mr. Afolabi Solebo, GM LASCOPA, Mr. Wole Ajimisinmi; Executive Director Wema Bank; Aldolphus Aletor, MD Rigo Microfinance Bank, Mr. Wale Adekola, Director, Center for Consumer Concern amongst others.

Digital credit customers in Nigeria markets are facing diverse and numerous financial consumer protection challenges, and that is why Consumertrics is partnering other private sector think-tanks on its advocacy series to discuss the rights of the borrowers and the true cost of credit and proper debt collection practices of lenders, he explained.