Economy

FG Gives Conditions to Online Money Lenders as Moves are on to Prosecute Violators

Tuesday, April 05, 2022 at 2:28 PM by Pascal Oparada

The federal government of Nigeria has vowed to go ahead with the criminal prosecution of online money lenders
Reports say that Babatunde Irukera, the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission said this in Abuja on Monday
The FCCPC chairman said the Commission will also prosecute employees of lending apps that harass and intimidate defaulters

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FCCPC, Nigeria's consumer rights watchdog, the Federal Competition and Consumer Protection Commission has said it will proceed with the criminal prosecution of online loan sharks who do their business in violation of the laws.

Babatunde Irukera, the Executive Vice Chairman of FCCPC said this in a joint document on behalf of the Joint Regulatory Task Force (JRTF) which addressed the activities of loan sharks in Abuja on Monday, April 4, 2022.

FCCPC. Loan apps, Federal government — FG to proceed with criminal prosecution of loan sharks Credit: Mike Miller
Source: Getty Images

The News of Agency of Nigeria (NAN) reports that the FCCPC helmsman said that the commission has been approached by a few of the lending apps with a desire to register with the government.

Loan sharks, employees in trouble

According to Irukera, the commission would equally hold employees, partners or agents of loan sharks accountable in accordance with the laws in the event of a violation, Nairametrics report says.

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The FCCPC boss said that as a prerequisite for being accepted into the existing framework, some of the loan sharks must stop harassing, intimidating and defaming defaulters and must also desist from contacting contacts of debtors, either by texts or calls.

He said the loan apps must employ civilised methods of loan recovery and engage in mechanisms that are appropriate in line with the laid down laws of Nigeria.

Nigerian government to regulate online lending platforms, says FCCPC

Legit.ng has reported that the Federal Competition and Consumer Protection Commission (FCCPC) said when they raided the loan sharks' penultimate week, the workers on the sites almost lynched them, prompting them to bring in police as protection.