Digital lenders under the Money Lenders Association (MLA) have praised Nigeria’s democracy for promoting financial inclusion.
They said democratic governance had expanded access to credit for underserved individuals and small businesses nationwide.
Mr Gbemi Adelekan, MLA Chairman and Group Managing Director of Trafalgar Associates Ltd., made the remarks on Friday during an interview with the News Agency of Nigeria (NAN) in Lagos.
Adelekan said democracy and the rule of law had created a suitable environment for digital lending.
He said the sector was contributing to economic growth, financial inclusion and MSME empowerment.
“A strong democracy is important for economic growth and development that benefits all Nigerians.
“This includes many MSMEs that depend on digital lenders for emergency funding and business growth,” he said.
The MLA chairman said democracy promoted trust, fairness and transparency within the financial ecosystem.
He added that digital lenders provided critical services supporting a sustainable Nigerian economy.
According to him, digital lenders have helped bridge gaps left by conventional banking institutions.
He said the platforms supported low-income earners and informal sector operators with accessible credit.
Adelekan noted that many Nigerians remained outside the formal banking system despite improvements.
He said this situation created opportunities for digital lending platforms to provide solutions.
He explained that internet growth and mobile technology accelerated digital lending adoption.
According to him, borrowers can access collateral-free loans through mobile applications and USSD platforms.
He said digital lending had reached both rural and urban communities across Nigeria.
“Timely access to credit helps individuals and businesses manage cash flow challenges.
“It also addresses emergency liquidity needs and improves livelihoods,” Adelekan said.
He added that MSMEs could expand operations and create jobs through working capital support.
Adelekan commended regulatory interventions by the Federal Competition and Consumer Protection Commission (FCCPC).
He described the measures as important steps towards sanitising the digital lending industry.
He said enforcement against unregistered operators improved consumer protection and industry standards.
The MLA chairman said licensing requirements had strengthened confidence among consumers and investors.
He called for more reforms to improve the digital lending ecosystem, especially debt recovery.
Adelekan urged government to create effective frameworks for recovering legitimate outstanding loans, calling for measures discouraging deliberate defaults by borrowers.
He advocated licensed lenders’ access to the Global Standing Instruction (GSI) framework.
According to him, the move will aid recovery from borrowers with multiple accounts. He proposed small claims digital courts for faster loan dispute resolutions.
Adelekan said such courts would support low-value consumer loan recovery processes.
He also urged increased financial literacy campaigns to promote responsible borrowing.
“Our youths need to understand the consequences of borrowing from multiple lenders.
“Credit must have consequences if the lending ecosystem is to remain sustainable,” he said.
Adelekan expressed confidence in the sector’s future with stronger regulations and education.
He said improved systems would continue supporting Nigeria’s economic development and inclusion.
