The current Acting Executive Vice Chairman/CEO of the Federal Competition and Consumer Protection Commission (FCCPC), Dr. Adamu Abdullahi, affirmed the Commission’s commitment to crafting a new regulatory framework for loan apps.

Despite the removal of former FCCPC leader Babatunde Irukera, Abdullahi, who previously served as the Head of Operations, shared during a live interview on Channels TV that he was involved in prior investigations and regulatory development.

He emphasized continuing the efforts initiated by Irukera to address the increasing indebtedness to loan apps, ensuring consumer protection.

Abdullahi highlighted collaborations with entities like CBN, Data Protection Commission, EFCC, and ICPC, aiming to create a secure environment for the operation of loan apps.

Notably, the FCCPC’s successful identification of companies behind the apps through Interim Regulation was highlighted, addressing issues of anonymity and potential harassment associated with loan app practices.

Abdullahi acknowledged the crucial role of loan apps in the economy but emphasized the need for a balanced approach to protect consumers from undue hardships during the loan repayment process.

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In a significant move aimed at restructuring and repositioning key agencies, President Bola Ahmed Tinubu has terminated the services of Mr. Babatunde Irukera, the CEO of the Federal Competition and Consumer Protection Commission (FCCPC), and Mr. Alexander Ayoola Okoh, DG/CEO of the Bureau of Public Enterprises (BPE).

The announcement was made by Ajuri Ngelale, the special adviser to the President on Media & Publicity.

The ousted Chief Executives have been instructed to hand over their responsibilities to the next most senior officers within their respective agencies, pending the appointment of new CEOs.

The decision, according to Ngelale, aligns with President Tinubu’s vision for restructuring critical agencies, emphasizing the commitment to safeguarding the rights of Nigerian consumers and fortifying institutions crucial for national economic growth.

The move underscores the administration’s dedication to implementing comprehensive changes in key sectors, fostering a robust foundation for agencies to play a more impactful role in contributing to the nation’s economic prosperity.

The search for new leadership in FCCPC and BPE is anticipated to bring fresh perspectives and strategies in line with the government’s vision for a dynamic and responsive public sector.

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TECHDIGEST – So far, the Federal Competition and Consumer Protection Commission (FCCPC) has registered and approved around 180 loan apps for operation in the country.

However, it has also vowed to crack down on illegal (unregistered) digital loan apps that are operating without authorization.

According to a statement released on Thursday, the FCCPC stated that it will release a comprehensive list of illegal digital loan apps that are operating in Nigeria.

The commission is taking strict measures to ensure that only registered and compliant digital money lenders are allowed to conduct business legally.

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The FCCPC has also taken action against two legally registered loan apps that have been harassing Nigerians.

As a result, ‘Getloan’ and ‘Camelloan,’ operated by Sycamore Integrated Solutions Limited and Orange Loan, and Purple Credit Limited respectively, will be permanently delisted from the Google Play Store.

The decision came after the commission conducted a thorough investigation into these apps and discovered duplicity, as well as their engagement in illegal and unregulated lending and recovery practices.

Babatunde Irukera, the Executive Vice Chairman/Chief Executive Officer of FCCPC, emphasized the importance of consumer protection in the digital lending sector.

He warned Nigerians to exercise caution when selecting digital money lenders and urged them to patronize only those listed on the commission’s approved list. This measure aims to safeguard consumers from falling victim to illegal and prohibited lending practices.

The FCCPC further revealed that it has placed digital money lenders that failed to register under its guidelines on its watchlist for strict surveillance and necessary action. The list of these non-compliant lenders will be made available on the commission’s website and will be periodically updated.

As the digital lending industry continues to grow in Nigeria, the FCCPC’s actions serve as a vital step toward establishing a regulated and consumer-friendly environment.

By weeding out illegal and non-compliant operators, the commission aims to protect Nigerians from exploitative lending practices and ensure that only trustworthy and compliant loan apps operate in the country.

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TECHDIGEST – The Federal Competition and Consumer Protection Commission (FCCPC) has extended the deadline for the registration of Digital Money Lenders (DMLs).

A statement by Mr Babatunde Irukera, the Chief Executive Officer (CEO) of the commission in Abuja on Friday, said the deadline of 90 days expired on Nov. 14.

He said the commission considered that some DMLs were still in the process of their registration and extended the deadline to Jan. 31, 2023.

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”On Aug. 18 in furtherance of the collaboration of Inter-Agency Joint Task Force, the FCCPC conducted enforcement actions in Lagos with respect to certain DMLs.

”In view of the desire to promote fair, transparent and beneficial alternative lending opportunities, the Joint Task Force (JTF) established a mutually adopted Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022.

”Subsequently, the commission commenced the registration of DMLs

”By an Order and Notice of the Commission on Aug. 17, existing DMLs were required to comply in not later than 90 days to confirm their business is uninterrupted.

”The commission has also created a publicly accessible list of the DMLs that have been granted approvals/conditional approvals,” Irukera said.

The CEO said the list of DMLs granted approval would be updated regularly and could be accessed at https://fccpc.gov.ng/registration-status-for-digital-money- lenders-8apps/link. (NAN)

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TECHDIGEST – The Federal Competition and Consumer Protection Commission (FCCPC) has barred all financial technology companies (FinTechs) from providing payment or transaction services to online money lenders under its investigation.

The identified FinTechs such as Flutterwave, Opay, Paystack and Monify were said to be operating payment systems and providing services to such online lenders under its investigation or not operating with applicable regulatory approvals.

This is coming several months after the commission had ordered Google and Apple to enforce the withdrawal of these money lending applications from their stores where evidence of inappropriate conduct or use of the application in violation of the rights of consumers has been established.

This was made known by the Executive Chairman of FCCPC, Mr Babatunde Irukera, during a chat with journalists while on an enforcement exercise on some of the digital money lenders on Thursday in Lagos.

Irukera said the commission also ordered telecommunication and technology companies which include Mobile Network Operators (MNOs) to stop providing server, hosting or other key services such as connectivity to such disclosed or known lenders.

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TECHDIGEST – The Federal Competition and Consumer Protection Commission (FCCPC), this week in Abuja, said it will begin criminal prosecution of unregistered loan apps and loan companies in breach of data privacy laws or apps operators harassing defaulting customers in violation of their legal rights.

The FCCPC warned that employees, collaborators or agents of money lenders are accountable for breach of existing laws that include harassments of defaulting customers. in line with extant laws in the event of any conduct violation.

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“They are also required to discontinue further abusive, coercive and inappropriate language in communication with loan defaulters or borrowers,” said the FCCPC in a statement.

The commission added: “To also provide a mechanism for transparency regarding loan repayment fees, default or late payment charges as well as interest calculation to the Commission. The mechanism must include an open, accessible and responsive feedback and dispute resolution framework that complies with fair lending and loan recovery principles.

“The Commission reserves the prerogative to proceed in any manner consistent with prevailing law including but not limited to criminal prosecution of any digital money lender, its employees, collaborators or agents, whose conduct is in violation of extant law.”

According to Executive Vice Chairman FCCPC, Mr. Babatunde Irukera, in statement to address the menace of loan sharks under investigation and whose accounts have been frozen accounts, operators have been told they are under obligation to comply with the country’s laws.

No operator has the right to contact third parties of borrowers or defaulters including people on their contact lists without their expressed permission whether through SMS or phone calls.

The FCCPC is part of a joint task force that include the National Information Technology Development Agency (NITDA) tasked with checkmating illegal and unfair practices in the money lending industry.

The taskforce had received over 5000 complaints regarding dubious conducts of some app-based money lenders.

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