Federal Competition and Consumer Protection Commission (FCCPC) has taken action to cleanse its database by removing all approved loan apps, known as Digital Money Lenders (DMLs), following concerns about misconduct and harassment of customers by some registered digital lenders.
The list of over 180 registered loan apps has been temporarily taken down for review and cleanup, with plans to restore it once the process is completed.Regulating digital lenders poses challenges due to the nature of online lending, making it difficult to exercise complete control.
Mr. Babatunde Irukera, CEO of FCCPC, highlighted this struggle in an interview with Nairametrics, where he mentioned that some companies operate ethically within the regulatory framework, while others engage in illegal and abusive conduct outside of it.
Similar challenges are faced by regulators worldwide when dealing with internet-based businesses. Developed countries and platforms like Google are learning from Nigeria’s efforts to address these issues.
FCCPC aims to conduct thorough investigations and hold accountable those engaging in unethical practices, permanently removing them from the list of allowed operators.
The ultimate goal is to strike a balance between promoting technological expansion and shared prosperity while safeguarding individuals from exploitation and impoverishment.