Enhancing Financial Inclusion and Advancement (EFInA), in partnership with the Shared Agent Network Expansion Facilities (SANEF) and Proshare, convened the second edition of the Ask the Regulator Consumer Protection Townhall.
- +EFInA, regulators host Townhall to tackle consumer risks in digital lending
The Townhall brought together regulators, industry leaders, and financial consumers to engage in a direct and practical conversation on consumer protection in Nigeria’s rapidly evolving digital financial services ecosystem, with a particular focus on digital lending.
The Townhall brought together regulators, industry leaders, and financial consumers to engage in a direct and practical conversation on consumer protection in Nigeria’s rapidly evolving digital financial services ecosystem, with a particular focus on digital lending. As digital financial services continue to expand, concerns around failed transactions, unfair lending practices, fraud, and ineffective complaint resolution have become more prominent.
The Townhall created a platform for addressing these issues openly, enabling consumers to ask questions and gain clarity about their rights, responsibilities, and available redress mechanisms.
In her opening remarks, Foyinsola Akinjayeju noted that “more importantly, there is a need to get the information to everyone that needs to know, the operators, regulators, and the consumers, such that there is so much more trust in the ecosystem because with financial services, many other goals can be achieved.”
She went on to emphasise that: “I always say that I don’t know of any sustainable development goal that you can achieve without financial inclusion. So, when you now start to see issues with financial inclusion, then we know that the other SDGs will be impacted.”
Speaking at the session, Aisha Isa-Olatinwo, director of the Consumer Protection and Financial Inclusion Department at the Central Bank of Nigeria, acknowledged the realities faced by consumers and the ongoing efforts to strengthen the system.
“Customer complaints are real and deeply felt. While consumers often speak up when things go wrong, improvements in the system don’t always get the same attention. The goal is not to assign blame, but to strengthen the system, because when consumers are protected, and their concerns are addressed effectively, it builds trust, and that trust is essential for a stable financial system,” she said.
Also speaking, Boladale Adeyinka, director, surveillance and investigations at the Federal Competition and Consumer Protection Commission (FCCPC), emphasised the importance of coordination and clarity in regulation.
She noted that effective consumer protection requires a structured approach where institutions operate within defined mandates while working collaboratively. “Protection works both ways. Stronger enforcement, clearer regulations, and better consumer awareness must work together. When all three align, the system becomes fairer, safer, and more accountable for everyone involved,” she stated.
From an industry perspective, Gbemi Adelekan, President of the Money Lenders Association (MLA), highlighted the importance of structured and responsible lending practices. He explained that while challenges exist, there are mechanisms within formal lending systems designed to support borrowers, particularly in difficult circumstances.
“A key part of responsible lending is flexibility. Rather than forcing immediate repayment, lenders may renegotiate terms to reflect a borrower’s financial reality. The goal is to make repayment more realistic, not punitive,” he said.
Providing the consumer advocacy perspective, Sola Salako-Ajulo, founder of the Consumer Advocacy Foundation of Nigeria (CAFON), underscored the need to bridge the gap between policy and consumer experience. “There is a significant gap between laws and action. Our role is to make consumer rights usable and to empower people with the information they need, especially in a financial sector that is both highly innovative and widely misunderstood,” she noted.
Across the session, key themes emerged around the need for clearer communication of loan terms, stronger enforcement against abusive lending practices, improved complaint resolution processes, and increased consumer awareness. Discussions also highlighted the growing collaboration between regulators and industry stakeholders to address emerging risks in digital lending, particularly around unlicensed operators, harassment, and data privacy breaches.
The Townhall reinforced the importance of creating platforms where consumers can engage directly with regulators and service providers, ensuring that policies are informed by lived experiences and that responses are clearly communicated.
