The Federal Competition and Consumer Protection Commission (FCCPC) remains steadfast in its commitment to introducing new regulations for loan app operations, according to Dr. Adamu Abdullahi, the Acting Executive Vice Chairman/CEO.
Despite the departure of the former FCCPC boss, Babatunde Irukera, Dr. Abdullahi affirms that the Commission will continue the development of the new regulation as planned under Irukera’s leadership.
During a recent interview on a live program on Channels TV, Dr. Abdullahi, who previously served as the Head of Operations at the FCCPC during Irukera’s tenure, expressed his readiness to carry forward the investigations and regulatory developments related to loan apps. He emphasized that the FCCPC will proceed with the development of additional regulatory requirements aimed at safeguarding consumer interests.
Addressing the rising indebtedness of Nigerians to loan apps, Irukera had announced plans for the FCCPC to establish a new regulatory framework before his removal in December of the previous year. Dr. Abdullahi asserts that the Commission will not deviate from this course of action and will even expand on the initiatives introduced by his predecessor.
Regarding the identification of loan app companies, Dr. Abdullahi highlighted a significant achievement made through the FCCPC’s Interim Regulation. Prior to the regulation, it was challenging to trace the companies operating loan apps. However, the FCCPC’s efforts have now enabled the identification and location of these entities.
Dr. Abdullahi explained that loan app companies previously gained access to borrowers’ phone numbers, using them to harass their families or employers. Such actions resulted in job losses and even loss of life. The Acting FCCPC boss emphasized the importance of providing a safe operating environment for loan apps, where borrowers’ privacy and well-being are protected.
While acknowledging the vital role of loan apps in the economy, Dr. Abdullahi emphasized the need to strike a balance between their operations and customers’ loan repayment defaults. He stated that the upcoming regulation aims to address these concerns and ensure that the loan app industry operates responsibly without causing harm to individuals and families.
In collaboration with the Central Bank of Nigeria (CBN), the Data Protection Commission, and the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices Commission (ICPC), the FCCPC is working diligently to establish robust regulatory measures for loan apps, ultimately promoting a healthy and secure lending environment.