REGULATING DIGITAL LENDING AND FINTECH CREDIT PLATFORMS IN NIGERIA

Abstract

The impact of technology in the financial world today is enormous. While financial inclusion is targeted by the government, digital financial services continue to proliferate. However, the system faces significant consumer protection challenges that threaten the very foundation of trust upon which sustainable financial inclusion depends. Regulating digital lending and FinTech Credit Platforms in Nigeria is the thrust of this paper. It finds that the Regulations for digital lending platforms in Nigeria are adequate but are not efficacious enough to deter fraud and adequately protect consumers. The financial inclusion objective envisaged by the Federal government by the year 2030 hangs in the air if the predatory credit providers are not checked by regulation. Adoctrinal approach of research is adopted by examining statutes, case laws, existing literature on the topic. This paper recommends among other, an interest rate ceiling for digital lenders to deter predatory lending. Regulators must enhance enforcement capacity, harmonize overlapping mandates, and leverage technology for better supervision. Digital credit lender and Fintech credit platforms must embrace consumer protection as a core business value.