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FCCPC orders mobile networks and payment systems to restrict online lending companies

The Federal Competition and Consumer Protection Commission (FCCPC) has mandated payment gateway systems and mobile networks to block online lending companies.

In the directive, the FCCPC called on payment system operators such as Flutterwave, Opay, Paystack and Monify, along with telecommunications companies, including mobile network operators, MNOs, in Nigeria to stop providing payment services. support to promote the operations of illegal digital money lenders.

FCCPC Executive Vice President/General Manager Babatunde Irukera made the revelation on Thursday in Lagos during a legal action against a loan shark commonly known as Soko Lending Limited.

According to Irukera, a limited interim regulatory/registration framework and guidelines for digital lending have been developed and adopted by the Joint Interagency Regulation and Enforcement Working Group as an interim step to establish a regulatory framework. clear to the industry.

“Soko Lending appears to be the largest digital money lender with multiple apps and brand names covering a significant portion of the digital/online lending market, and one of the most prolific players in privacy breaching consumers, fair lending terms and ethical loan repayment/recovery practices.

“The FCCCPC has also ordered telecommunications/technology companies (including mobile network operators (MNOs)) to cease and desist from providing servers/hosting or other key services such as connectivity to disclosed lenders. or known who are targets/subjects of investigation or otherwise operate without regulatory approval.

“The Commission has also issued other orders that will disable or diminish the ability of violators to devise circumvention efforts or alternative mechanisms to circumvent the purpose of the investigation,” he said.

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