The government shares a significant part of the blame. The Central Bank of Nigeria (CBN) dictates interest rates to all commercial banks and microfinance institutions. Sometimes, when the CBN observes that there is a shortage of money in circulation, it reduces interest rates. Conversely, when there is excess money in circulation, it increases interest rates across all banks. Therefore, the CBN determines the percentage banks charge on loans.

Unfortunately, the government appears indifferent, as long as fintech companies and banks are paying their taxes.

As for the banks, newly employed staff are often assigned to the marketing or loan department. The volume of loans they can disburse often determines their chances of promotion. This is because loans are a major source of profit for banks. These days, banks and fintech companies even sponsor ads on social media to attract loan seekers, confident that with a customer’s BVN (Bank Verification Number), they can trace or track defaulters.

Anyone who takes a loan from a fintech company or a bank and refuses to repay will eventually be forced to pay. I have seen several cases where individuals planning to travel abroad were compelled to settle their debts. Embassies now conduct BVN checks, and I know at least three or four people who were denied travel to the US, UK, and Saudi Arabia until they cleared their outstanding loans. It was painful for them at that point. That’s why it's advisable for everyone to repay whatever they borrow from banks or fintech lenders.