A Nigerian loan recovery company, Mida Technologies, says it is recovering up to 40 per cent of bad loans by using a human-focused approach supported by technology, breaking away from the aggressive and sometimes unethical practices common in the industry.
Chief Executive Officer and Co-founder of Mida Technologies, Mayowa Anibaba, disclosed this in a statement on Thursday, saying the firm avoids harsh methods such as public shaming and harassment. Instead, it uses respectful communication and behavioural insights to understand why borrowers default and then help them repay their loans.
“Resorting to name-shaming, smear campaigns, and public ridicule only makes some delinquent debtors more defiant,” Anibaba said. “We prefer using channels like SMS, email, WhatsApp, phone calls, and even in-person visits to connect with borrowers.”
He explained that the company tries to understand the reasons behind loan defaults, such as job losses or medical emergencies, and then tailors solutions, like loan restructuring, to fit each borrower’s situation. According to him, Mida uses algorithms and behavioural data to guide this process.
Chief Operating Officer, Adija Uzodinma, explained that many borrowers go into hiding after facing embarrassment from traditional recovery agents. But with Mida’s tools like skip tracing and retokenization, the company is able to locate these individuals and re-establish contact.
“Through digital skip tracing, we can connect with the borrower and commence the process of helping them fulfill their repayment obligations,” Uzodinma said.
She added that by using this “tech-and-empathy” approach, Mida Technologies helps lenders recover money that could have been permanently lost. “It’s a significant boost. It directly improves liquidity and strengthens the sustainability of the lenders we work with,” she noted.
Co-founder and Chief Revenue Officer, Oke Egbi, added that their recovery method also supports Nigeria’s wider financial inclusion targets. By avoiding humiliation, she said, Mida helps bring defaulting borrowers back into the formal banking system.
Egbi said this approach aligns with the Central Bank of Nigeria’s goal of achieving 95 per cent financial inclusion. She pointed out that ethical practices also save money for lenders by reducing the number of customers who leave and the cost of acquiring new ones.
“Humiliating debtors creates distrust and drives them away from formal credit,” Egbi said. “But when people are treated with dignity, they’re more likely to repay and continue using banking services.”
Mida Technologies’ success is drawing attention in a credit market that often relies on fear-based recovery methods. The firm’s method of combining digital tools with empathy may point the way to a more balanced and sustainable model for the future of debt collection in Nigeria.
Industry watchers say Mida’s strategy could influence how banks and fintechs handle loan defaults, especially at a time when economic hardship is making it harder for many Nigerians to meet their repayment deadlines. By showing that compassion can yield results, the firm is positioning itself as a model for ethical recovery practices.
