Should Lagos State Government Regulate Money Lenders?
Last week, Lagos State government organized a meeting with money lenders. Government is interested in reviewing the law that regulates the sector. Government said it wants to get the inputs of the players.
Sandra Ezekwesili begins the show by asking the question: Should Lagos State Government Regulate Money Lenders?
She mentions the two-parts that affect money lending in Lagos. One is federal, through the Central Bank, the other through states through money lending laws. She says both parties have a part to play.
“You have a lot of online lending going on these days. There are so many apps that make the lending. Now that government wants to regulate the sector, what will that mean for the average Nigerian?” Sandra asks.
The COO of Alternative Assets and Credits Limited, Dr. Yinka Adewusi, the guest on the show is a stakeholder who answered a lot of questions. Now, Nigerians can ask him all the questions they need to get answers to.
As he speaks on the Big HardFacts, he gives the reason that the government wants to regulate the sector. “Much of the content of the Law are not in tune with requirements under the modern practice on a daily basis now. This just to ensure that Lagos state is proactive in this area, as this affects a large part of the state’s economic growth.
“The essence of the forum was to bring all the players together. It would not be ideal for the state to unilaterally update the law without informing the operators, so that Lagos can have a mutually beneficial law.”
On Debt Recovery
Adewusi tells Sandra that whoever lends money knows there will be problems. There will be defaulter. Business may not move for the loanee, employment may have been terminated, or some people are dubious, so they want to get away with it.
Technology is now making loan companies get through the issue of lending to people who already have debts incurred elsewhere. People must also get through credit checks. This also ensure that the lenders are covered to a reasonable degree.
“Lending and default, both of them go together. Even if it is not totally put off, the issue of loan defaults will be reduced to its barest minimum, especially when the lending law has been reviewed under the Ministry of Home Affairs. Hopefully, people will know how defaulters will be dealt with,” Adewusi says.
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