The Federal Competition and Consumer Protection Commission (FCCPC) has shed light on the use of Payment Solution Service Providers (PSSPs) by illegal digital money lenders (DMLs), commonly known as loan apps, to conduct their transactions. The Commission’s CEO, Babatunde Irukera, unveiled this disconcerting fact in response to recent developments within the financial sector.
In the wake of the Nigeria Inter-Bank Settlement System’s directive to banks to remove PSSPs, amongst other entities, from their payment options, Irukera revealed the uphill battle in halting the operations of PSSPs. Despite efforts to restrict their activities, he emphasized the challenge in impeding the pivotal role played by PSSPs in facilitating the transactions of DMLs.
Unveiling the modus operandi of these illicit DMLs, Irukera elucidated that while their primary operations are conducted online, they seamlessly transition their transactions to PSSP wallets when faced with frozen bank accounts. This revelation accentuates the complex and adaptable nature of their operations, thus elucidating the difficulties in curtailing their activities.
Moreover, amidst speculations circulating on social media regarding the FCCPC’s purported allowance of illegal DMLs to continue operating in exchange for bribes, Irukera vehemently refuted these allegations. He adamantly asserted that the proliferation of these unlawful DMLs is contingent on their technologically adept deployment, as they ingeniously resurface daily on diverse online platforms utilizing APKs. Infuriated by the insinuations of corruption, Irukera categorically denied any association between the FCCPC and bribery, underscoring the herculean task of eradicating these clandestine operations.
The FCCPC’s unwavering pursuit of justice and consumer protection is evidently thwarted by the inherent challenges posed by the digital landscape. While the complexities of combating these illegal loan apps persist, the FCCPC remains resolute in its commitment to curbing their influence and safeguarding the public from their predatory practices.
