The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the escalating breach of its Limited Interim Regulatory/Registration Framework and Guidelines by digital loan apps in Nigeria. The regulatory body disclosed that infractions have surged as more Nigerians turn to loan apps, potentially triggering harassment and defamation tactics due to a rising number of defaulting customers.
Dr. Adamu Abdullahi, Acting Executive Vice Chairman/CEO of FCCPC, announced intensified enforcement efforts to ensure compliance. He emphasized a zero-tolerance stance against any exploitation or abusive conduct by digital lenders in balance calculations, loan default enforcement, or recovery processes.
Dr. Abdullahi stated, “The Commission will be engaging approved loan apps concerning a more robust compliance framework, including any additional requirements where applicable, and possible mechanisms for otherwise blacklisted apps.”
The FCCPC, led by Babatunde Irukera, had introduced the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending in 2022, in collaboration with the Joint Task Force (JTF).
The framework aimed to promote fair, transparent, and beneficial alternative lending opportunities, addressing concerns related to rights violations and unfair practices.
Despite the registration of 211 digital lenders by December last year, concerns persist regarding the growing rate of borrower defaults. Many borrowers attribute their inability to repay to high interest rates, prompting some platforms, even registered ones, to resort to unethical practices for debt recovery.
The FCCPC CEO welcomed demonstrated and timely compliance by legitimate operators to enhance fairness for consumers and competitors. For unapproved operators, Dr. Abdullahi highlighted the scrutiny process, including law enforcement actions, regulatory prohibition, and consequences.
