FCCPC regulations: Don’t offer loan if borrower cannot repay – Kalu Aja to operators

A financial expert, Kalu Aja, has urged Mobile Money operators and digital money lenders in Nigeria not to offer credit if borrowers cannot repay.

He disclosed this in a terse statement on his X account on Friday.

According to Aja, DMLs should adhere strictly to borrowers’ ‘ability to pay law’ according to the Central Bank of Nigeria’s Consumer Protection Regulations.

“All loan apps in Nigeria must adhere to the “Ability to Repay” law.

“If the borrower cannot repay, do not offer a loan,” he wrote.

This comes as the country’s Federal Consumer Protection Commission recently unveiled regulations to address longstanding complaints concerning the activities of digital money lenders and mobile money operators (MMOs), popularly known as loan sharks.

The commission said non-compliance with the new regulations would attract sanctions, which include fines of up to N100 million or 1 per cent of turnover, as well as potential disqualification of directors for up to five years.