The Nigerian Consumer Credit Corporation, known as CREDICORP, said lenders must conduct debt recovery lawfully and with respect for borrowers [1].
The warning addresses a growing concern over the tactics used by creditors to reclaim funds. By emphasizing that being in debt is not a crime, the agency seeks to prevent the harassment and humiliation of citizens who struggle with repayments [2].
CREDICORP said lenders must adhere to legal frameworks when pursuing outstanding debts [1]. The agency said the dignity of the borrower must be maintained throughout the recovery process, regardless of the amount owed [2].
Lawful debt recovery practices are essential to maintaining a stable financial ecosystem in Nigeria [1]. The agency's intervention comes as a move to protect borrowers from predatory behavior that may bypass judicial processes or violate personal privacy [2].
While lenders have a right to recover their capital, CREDICORP said this right does not grant permission to treat debtors as criminals [1]. The agency urged financial institutions and private lenders to implement recovery strategies that comply with existing laws [2].
Failure to follow these guidelines could lead to legal repercussions for the lenders themselves [1]. The agency said it intends to ensure that the consumer credit market grows in a way that balances the needs of the lender with the fundamental rights of the borrower [2].
“Being in debt is not a crime.”
This directive signals a regulatory shift toward stronger consumer protection within Nigeria's credit market. By explicitly decoupling debt from criminality, CREDICORP is attempting to curb the use of extrajudicial intimidation and social shaming—tactics often employed by digital lenders—thereby forcing creditors to rely on formal legal channels for dispute resolution.
