Loan Shark

Nigerian Government Orders Flutterwave, Paystack, Opay, Monify, and Telcos to Block Online Lenders

The Nigerian government in line with its agency, Federal Competition and Consumers Protection Commission (FCCPC) has ordered Flutterwave, Paystack, Opay, Monify, and Telcos to block and stop providing support services for loan applications to operate and illegal activities by online lenders. 

Vice Chairman of F.C.C.P.C. Speaks

In a chat with the press,  the Executive Vice Chairman and Chief Executive Officer of F.C.C.P.C, Babatunde Irukera, revealed that the Nigerian government has a stronghold against the operation of loan sharks. Furthermore, he says “the commission is going after the loan sharks for operating illegally in the country, using unethical means to regain small loans they lend to people as well as breaking privacy rights of customers”.

On the 11th of March 2022, the federal government through its joint committee investigating rights violations and unfair practices conducted a raid to shut down illegal online loan sharks operating without the Corporate Affairs Commission (CAC). Some of these include GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, and Easy Moni.

Loan Application Violets Human Right

 Also, these loan apps violate the rights of the Nigerian customers. Despite the fight against their illegal acts, the loan apps are yet to cease harassing and violating customers and their rights. In view of this, Irukera added that the commission has developed a regulatory and registration framework that serves as guidelines for lending money online.

He said “the information available to the commission demonstrates that Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names. It covers a significant share of the digital or online lending market, and is one of the most prolific apps in violating consumer privacy, fair lending terms and ethical loan repayment and recovery practices”. 

Decrease in Unlawful Acquisition of Information 

However, from the prior actions of  FCCPC operation and raiding, there has been a decrease in the amount of the unethical practice of  lending and unlawful acquisition of customers’ information. 

Tech companies are hereby ordered to obtain permission before providing services to online lenders. Banks and other online service providers have been placed under a strict regulatory permission before they can provide any from of monetary services to lenders or loan apps.