FCCPC to activate new regulation for operations of loan apps in Nigeria –Ag. EVC/CEO

*Dr. Abdullahi Adamu, Acting Executive Vice Chairman/CEO of the Federal Competition and Consumer Protection Commission affirms the market regulatory Commission will go ahead to develop a fresh regulatory framework to address Nigerian consumers’ rising indebtedness to loan apps

Isola Moses | ConsumerConnect

Dr. Abdullahi Adamu, Acting Executive Vice Chairman/Chief Executive Officer (EVC/CEO of the Federal Competition and Consumer Protection Commission (FCCPC), says the market regulatory Commission will formulate and implement  a new regulation for the operations of loan apps.

Abdullahi stated this while featuring on a recent Channels TV programme monitored in Lagos.

ConsumerConnect had reported President Bola Ahmed Tinubu, in a recent statement the Presidential Spokesman issued, sacked Mr. Babatunde Irukera as the EVC/CEO of FCCPC.

Also prior to his dismissal removal from office December 2023, Irukera had announced the FCCPC, in 2024, develop a new regulatory framework to address Nigerians’ rising indebtedness to loan apps.

The Acting FCCPC Chief said he had been the Head of Operations at the Commission, and was part of investigations of loan apps and the development of regulations.

Garba, therefore, affirmed the readiness of his leadership of FCCPC to continue the development of the new regulation as planned by the immediate past EVC/CEO.

Pledging the FCCPC’s commitment to advancing what Irukera had been doing, Dr. Abdullahi stated: “On the investigations regarding the loan apps and all the developments of the regulations were done with me as part of the team.

“Therefore, nothing stops our continuity in that respect. We will develop the additional regulatory requirements that are needed. ”

He further explained “what we want to do is to ensure that the interests of the consumer are protected.

“We are working on this project along with the CBN which has the core competence in finance in Nigeria.

“Of course, the Data Protection Commission is also there as well as the EFCC and ICPC.”

As regards the identification of the loan sharks, Abdullahi said a big success the Commission had recorded in addressing the issues with loan apps was the identification of the companies behind the apps through its Interim Regulation.

The Acting EVC/CEO of the Commission noted before the regulation during his predecessor’s tenure, there was no way to trace any of the companies operating the loan apps.

He also affirmed that hitherto, “when they did what they used to do, there was no way you could put names to the companies or their location.

“It took us a long time before we could identify where they are operating from.”

Abdullahi stated: “What they used to do is immediately you get a loan from them they have access to your phone numbers.

“So, they can now go ahead and harass your family or employer. Some people lost their jobs through that.

“People even lost their lives. We don’t want that kind of harassment. What we want is to have a safe place where they can operate.”

Meanwhile, Dr. Abdullahi has said the market regulatory Commission will try to strike a balance between the continuous operations of the loan apps and the consumers’ defaulting in repaying their loans.

Despite the challenges, however, the Acting Executive Vice-Chairman of FCCPC said the loan apps are playing important roles in the economy.

He added: “Yes, they give loans here and there and they must collect their loans back, but they do not have to go ahead and destroy families and lives in the process of collecting back their loans.

“So that is what this regulation that we’re coming up with will address. We are trying to balance everything.”