Mida Technologies, a Nigerian loan recovery firm, is making waves in the country’s financial sector by adopting a unique model that combines technology with empathy—a strategy that is yielding a 40 per cent recovery rate on delinquent loans. The firm’s success contrasts sharply with the traditional debt recovery practices of harassment and public shaming.
In a statement issued on Thursday, Mida Technologies CEO and Co-founder, Mayowa Anibaba, emphasized that aggressive collection methods such as name-shaming, smear campaigns, and public ridicule often do more harm than good.
“Resorting to name-shaming, smear campaigns, and public ridicule only makes some delinquent debtors more defiant,” said Anibaba. “Instead, we opt for a respectful engagement strategy that seeks to understand the debtor’s situation.”
Mida’s approach involves multi-channel communication, including SMS, emails, WhatsApp, phone calls, and in-person visits. These engagements focus on identifying the root causes of loan default—such as job loss, medical emergencies, or family issues—and then crafting custom repayment plans based on algorithm-driven behavioural insights.
Chief Operating Officer, Adija Uzodinma, explained how the firm’s use of digital tools like skip tracing and re-tokenisation of written-off loans plays a vital role in re-engaging borrowers who have slipped through the cracks.
“Quite understandably, some delinquent debtors will try to go under the radar due to the embarrassing treatment they may have previously faced,” she said. “Through digital skip tracing, we reconnect with these borrowers and help them restart their repayment journey.”
Uzodinma noted that the tech-and-empathy model enables lenders to recover loans that might otherwise be permanently written off, which boosts liquidity and financial sustainability for lending institutions.
Co-founder and Chief Revenue Officer, Oke Egbi, highlighted how Mida’s model supports Nigeria’s financial inclusion goals, especially the Central Bank of Nigeria’s (CBN) 95 per cent inclusion target.
“Humiliating debtors creates distrust and pushes them further away from formal credit systems,” Egbi stated. “By treating them with dignity, we not only improve recovery rates but also help borrowers regain trust in financial institutions, which is critical for financial inclusion.”
Egbi added that the ethical approach also reduces customer churn and lowers acquisition costs for lenders. Rather than burning bridges, Mida builds long-term trust that fosters stronger client relationships.
The firm’s human-centered model offers a blueprint for ethical loan recovery, particularly at a time when many Nigerians are burdened by rising cost-of-living challenges and high-interest short-term loans from digital lenders.
Mida’s model signals a significant paradigm shift in Nigeria’s credit landscape, offering a route where empathy and technology work hand-in-hand to restore trust, improve financial behaviour, and build a more sustainable credit economy.
With lending on the rise across digital platforms and traditional banks, Mida’s approach could set a new standard, promoting responsible lending, improved borrower-lender relations, and a credit culture grounded in understanding rather than intimidation.
