Shaibu Haruna has called for stronger consumer protection measures to support the rapid expansion of digital lending across Africa, warning that the continent’s growing financial technology space could face serious trust and sustainability challenges if borrowers are not adequately protected.
Speaking during discussions on financial inclusion and the future of digital finance in Africa, Haruna stressed that while digital lending platforms have significantly improved access to credit for millions of underserved Africans, there is an urgent need for stronger regulations and ethical lending practices to safeguard consumers.
According to him, digital lending has become one of the fastest-growing sectors within Africa’s fintech industry, particularly among young people, small business owners, and individuals who traditionally struggle to access loans through conventional banks.
He noted that mobile technology and digital finance innovations have helped bridge financial gaps across many African countries by offering quick and convenient access to loans through smartphones and mobile money platforms. However, he cautioned that the speed of growth in the industry must be matched with proper oversight and consumer education.
Haruna expressed concern over reports of excessive interest rates, hidden charges, aggressive debt recovery methods, and misuse of customer data by some digital lending operators. He explained that these practices risk damaging public confidence in the sector if regulators and industry players fail to act decisively.
He further emphasized that consumer protection should not be viewed as an obstacle to innovation but rather as a foundation for long-term growth and investor confidence within the digital finance ecosystem.
According to Haruna, borrowers must clearly understand loan terms, repayment obligations, and interest calculations before accepting digital credit offers. He also called for improved transparency from fintech companies and stronger data privacy protections to prevent exploitation of vulnerable users.
The financial technology advocate urged governments, central banks, and regulatory institutions across Africa to work closely with fintech companies in developing balanced policies that encourage innovation while protecting consumers from abuse.
He added that strengthening regulatory frameworks would also help reduce fraudulent activities and improve accountability within the digital lending space, making the sector more sustainable and attractive to investors.
Digital lending has expanded rapidly across several African countries in recent years due to increasing smartphone penetration, mobile money adoption, and demand for accessible financing options. Many small businesses and informal sector workers now rely on mobile-based loans for daily operations and emergency financial needs.
Industry experts believe that while the growth of digital finance presents major economic opportunities for Africa, consumer trust and responsible lending practices will remain critical to the sector’s long-term success.
