The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria is taking action against Digital Money Lenders (DMLs) who are not following the regulations. Adamu Abdullahi, the acting Executive Vice Chairman/Chief Executive Officer of FCCPC, revealed in a statement on Monday that there has been an increase in violations by DMLs.
Abdullahi emphasized that the commission is stepping up enforcement efforts and maintaining a zero-tolerance approach towards the exploitation of consumers and any abusive behavior by DMLs.
The FCCPC has detected a surge in violations of the Interagency Joint Task Force’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022. The commission acknowledges the rise in loan demand during this period, resulting in a higher risk of default due to the large number of loans and typical cash flow challenges. However, it insists that the solution should not involve breaking the law or using unethical recovery methods.
The commission plans to engage approved loan apps to ensure a more robust compliance framework, including additional requirements. It encourages legitimate operators to demonstrate and maintain timely compliance to promote fairness among consumers and competitors. Meanwhile, operators without the commission’s approval will face scrutiny and potential law enforcement action, as well as regulatory prohibition and consequences.
The FCCPC reiterated its commitment to ensuring legal and ethical operations in digital lending. In a related development, the commission had previously delisted 18 DMLs in August last year for regulatory violations and indicated plans to introduce new regulations for DMLs in 2024.
