Financial expert Kalu Aja has advised digital money lenders (DMLs) and mobile money operators (MMOs) in Nigeria to stop giving loans to borrowers who clearly lack the capacity to repay.

In a post on his X account on Friday, Aja stressed that all loan apps must comply with the Central Bank of Nigeria’s Consumer Protection Regulations, which emphasize the “Ability to Repay” rule.

“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.

 

His comment comes shortly after the Federal Competition and Consumer Protection Commission (FCCPC) introduced new regulations to curb the excesses of loan sharks and digital lenders, following years of complaints from Nigerians about unethical practices.

The FCCPC warned that non-compliance with the new rules could attract hefty penalties, including fines of up to ₦100 million or 1% of company turnover, and even the disqualification of directors for up to five years.

The move is part of broader efforts to protect consumers, promote responsible lending, and end exploitative practices in Nigeria’s digital lending space.