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Consumer Rights: Nigeria set to bring loan sharks into regulatory framework ─FCCPC

*Nigeria’s Federal Competition and Consumer Protection Commission says it recovers 119 laptops, eight mobile phones, a table phone and hard drive from the illegal loan business operators during the regulatory authorities’ recent joint raid on their locations in Lagos, for forensic analysis, described the exercise as a ‘terrible experience’

Isola Moses | ConsumerConnect

In regard to ordeal suffered by the operatives during the recent ‘sting operation’ on certain illegal online finance firms in Opebi area of Lagos State, the Federal Competition and Consumer Protection Commission (FCCPC) has diswclosed that the enforcement team of the Nigerian regulators’ Joint Task Force handling the loan sharks actually had ugly experiences in the process.

ConsumerConnect reports Mr. Babatunde Irukera, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of FCCPC, who spoke at an event to commemorate the 2022 World Consumer Rights Day (WCRD) Tuesday, March 15, 2022, noted that the team escaped near riotous experiences in Lagos.

The latest raid on the illegal loan sharks concurred with the theme of the 2022 World Consumer Rights Day, ‘Fair Digital Finance’ in relation to the financial services sector of the Nigerian economy.

Mr. Irukera, represented by Dr. Adamu Abdullahi, Executive Commissioner of Operations at FCCPC, said the faces behind the company must be uncovered in line with the country’s regulations.

The FCCPC Executive Vice-Chairman and CEO stated: “We discovered that this is much more serious than we thought and we have to now look at how we can bring these people into the regulatory framework.

“On the raid that we conducted on Opebi Street, in Lagos, we discovered that this is much more serious than we thought it is.

He also related: “The hall was very big; each person had a computer with phone to reach loan defaulters.

“In the process, we took from them 119 laptops, eight mobile phones, one table phone and one hard drive.

“These devices are now with forensic experts and if we look at them and all the things that we can gather from them, we can now decide on the way forward.

“This is because there are faces behind these fellows.”

The Commission further said: “These are unemployed graduates who do not have any other means of livelihood.

“In the long run, they tried to even riot against us for preventing them from doing what their job is.

“They said Chinese gave them employment, and the Federal Government did not; and the Federal Government said they should not continue with what they are doing.”

The regulatory Commission also observed that the loan sharks “felt it proper to attack us; so the Police cover that we had, had to shoot in the air to disperse them.

“It was a terrible experience.

Loan sharks to be regulated

Meanwhile, the Commission has said that these is a need to explore the possibility of bringing the illegal digital loan firms into the Nigerian regulatory framework.

“This is so that we can now hold them to book,” Irukera stated.

Recall the FCCPC in collaboration with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Economic and Financial Crimes Commission (EFCC), National Information Technology Development Agency (NITDA), and other related Federal agencies, last weekend, raided the premises of an illegal “Chinese-owned online moneylenders at two locations along Opebi Road, in Lagos.

The joint task force is made up of the FCCPC, ICPC, the Central Bank of Nigeria, National Information Technology Development Agency and the National Human Rights Commission (NHRC).

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