E-commerce and digital lending, once celebrated as major drivers of Nigeria’s digital economy, are increasingly being flagged as pain points for consumers and regulators. As more Nigerians adopt online shopping and mobile-based credit services, complaints about fraud, hidden charges, poor customer experience, and weak regulatory oversight have risen sharply.
In the e-commerce space, trust remains the biggest challenge. Many buyers report receiving counterfeit, substandard, or wrong items, while others face difficulties in getting refunds or replacements. Delivery inefficiencies, ranging from delays to outright non-delivery, have further eroded confidence in online platforms. Sellers, on the other hand, highlight challenges like exploitative commission structures, payment delays, and inadequate dispute resolution mechanisms. These issues threaten the sustainability of Nigeria’s e-commerce growth, despite its potential to expand access to goods and services nationwide.
Digital lending has also come under scrutiny. The ease of accessing quick loans through mobile apps has attracted millions of Nigerians, particularly those excluded from formal banking systems. However, the sector has been plagued by predatory practices. Many lending platforms impose exorbitant interest rates, short repayment windows, and hidden fees that push borrowers deeper into debt. Even more alarming are widespread complaints of harassment, including public shaming of defaulters through text blasts to their contacts. This has raised concerns about consumer protection, data privacy, and ethical business conduct.
Regulators such as the Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN) have intervened, introducing guidelines to curb abuses in both sectors. For digital lenders, this includes a licensing framework and restrictions on unethical recovery practices. For e-commerce, authorities are exploring stricter consumer protection rules, as well as collaboration with industry players to improve transparency, logistics, and accountability.
Despite these challenges, experts believe e-commerce and digital lending will remain central to Nigeria’s digital economy. Both sectors address genuine needs—convenience, broader market access, and financial inclusion—but their sustainability depends on rebuilding consumer trust. Addressing fraud, predatory behavior, and poor service delivery will be critical for unlocking long-term growth and ensuring that these digital innovations truly benefit Nigerians rather than exploit them.
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