FinTechs: Nigerian regulators set to shut down illegal moneylending firms

*The Federal Government of Nigeria will be writing interim regulations and some basic information for all moneylenders while closing down illegal businesses and engaging App stores to shut down certain applications that are infringing and abusive to consumers ─Babatunde Irukera, Executive Vice-Chairman/CEO, Federal Competition and Consumer Protection Commission

Gbenga Kayode | ConsumerConnect

Sequel to their collaborative efforts at protecting consumers, the Federal Government’s regulatory authorities have indicated that they are ready to enforce measures at addressing the apparently growing multiple, potentially dubious conduct of certain moneylenders, otherwise known as ‘loan sharks’ in the Nigerian economy.

ConsumerConnect had reported that the Federal Competition and Consumer Protection Commission (FCCPC) recently hosted a meeting, attended by the Chief Executive Officer of the Independent Corrupt Practices Commission (ICPC), and representatives of the National Information Technology Development Agency (NITDA) and Central Bank of Nigeria (CBN) to tackle multiple potentially dubious conduct of certain moneylenders in the economy.

Mr. Babatunde Irukera, Executive Vice-Chairman/CEO of FCCPC

The regulatory Commission also stated pursuant to Sections 17(a), (e), (g), (h), (i), (m), (s), (x), (y), (z); 123; 124; 127; 129; 130 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, the FCCPC hosted the meeting with other regulatory agencies to tackle the menace November 10, 2021.

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The Joint Committee also involves other representatives as the Economic and Financial Crimes Commission (EFCC), and National Human Rights Commission (NHRC).

Now, the FCCPC has disclosed that in tackling violation of consumer rights in the moneylending industry, the regulators will shut illegal businesses at the commencement of its enforcement in the West African country.

Mr. Babatunde Irukera, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of FCCPC, noted Sunday, December 26, 2021, in Abuja, FCT, that the enforcement would commence soon, according to agency report.

Irukera said that Joint Committee would also be writing interim regulations which money lending companies must comply with.

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The FCCPC EVC/CEO stated: “The joint committee is meeting and agreeing on how to proceed but I can say that two of the entities of the joint committee will be going on the field and doing enforcement work now, very shortly.

“They will be closing down businesses and engaging App stores to shut down certain applications that are infringing and abusive.”

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He further said: “We are also going to be writing interim regulations and some basic information for all these moneylenders to provide information, so that people will know who they are.

FinTech in Nigeria   Photo: Textnext.Ng

“Some of them are just Apps that we do not even know who the promoters are.

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“So we are going to provide certain frameworks for them to comply with before doing business.”

Illegal moneylenders target some of the most vulnerable in society: FCCPC

The ECV/CEO of FCCPC hitherto in a statement had noted that initial inquiries demonstrated that many of the purported lenders are not legally, acceptably established, or otherwise licensed by the appropriate authorities to engage in the services they ostensibly provide to consumers of financial products and services.

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Irukera said of the collaborative meeting with other regulators: “The meeting resolved to collaborate, pursue urgent enforcement action against already known violators while investigating others, as well as criminal prosecutions where applicable.

“A joint taskforce of analysts and enforcers was also created and immediately activated.”

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He also commended the invited regulatory agencies for the swift responses and willingness to collaborate in addressing what is fast becoming a dominant and abusive practice targeting some of the most vulnerable in the Nigerian society.

On consumer complaints about Insurance business

In a related development regarding the increasing number of consumer complaints about services by insurance companies in Nigeria, Mr. Irukera also disclosed that the FCCPC is making progress in the regulatory Commission’s Memorandum of Understanding (MoU) with the National Insurance Commission (NAICOM).

The FCCPC Chief also noted the the regulators anticipate that “as we conclude that MoU early next year, we will have more industry-wide interventions in that space.

“We get a lot more complaints about the insured who have paid their premium and are not been settled and so, we are engaging NAICOM on that.’’

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