Mida Technologies, a Nigerian loan recovery firm, is achieving a 40 per cent recovery rate on bad loans by pairing technology with empathy, a stark contrast to the industry’s traditional aggressive tactics, the company said on Thursday.

Traditional debt recovery in Nigeria often leans on public shaming or harassment, tactics that Mida Technologies CEO and Co-founder, Mayowa Anibaba, says backfire.

“Resorting to name-shaming, smear campaigns, and public ridicule only makes some delinquent debtors more defiant,” Anibaba said in a statement to The PUNCH.

Instead, Mida engages borrowers through respectful channels: SMS, email, WhatsApp, phone calls, and even in-person visits, to understand default triggers like job loss or medical emergencies. Solutions, such as loan restructuring, are then tailored using algorithm-driven behavioural insights, the CEO said.

The Chief Operating Officer of Mida Technologies, Adija Uzodinma, credited the firm’s digital tools, including skip tracing and retokenization of written-off loans, for reconnecting with borrowers who might otherwise evade repayment.

“Quite understandably, some of the delinquent debtors will try to go under the radar as a result of the embarrassing treatment meted out to them during the loan recovery process. Through digital skip tracing, we can connect with the borrower and commence the process of helping them fulfill their repayment obligations,” Adija said.

“In our experience at Mida Technologies, a tech-and-empathy approach can help lenders recover up to 40 per cent of delinquent loans that may have otherwise been written off. That’s a significant boost, one that directly improves liquidity and strengthens lenders’ sustainability,” she added.

The Co-founder and Chief Revenue Officer, Mida Technologies, Oke Egbi, said the strategy also aligns with Nigeria’s broader financial inclusion goals.

By treating borrowers with dignity, Mida helps reintegrate them into the banking system, supporting the Central Bank of Nigeria’s 95 per cent inclusion target.

“Humiliating debtors creates distrust and drives them away from formal credit,” Egbi noted. She added that ethical practices reduce customer churn and acquisition costs for lenders, preserving revenue.

Mida’s model ensures loan discussions remain constructive, fostering trust between lenders and borrowers. For Nigeria’s credit economy, the firm’s approach could signal a shift toward sustainability and fairness, proving that compassion can be as effective as confrontation.