The Federal Government of Nigeria has commenced an “advanced
investigation” of digital money lenders.
Federal Competition and Consumer Protection Commission
(FCCPC) chief, Babatunde Irukera, made the announcement Monday.
He issued a statement on behalf of the Joint Regulatory and
Enforcement Task Force (JRETF) comprising the FCCPC, National Information
Technology Development Agency (NITDA) and Independent Corrupt Practices
Commission (ICPC).
Irukera noted that pursuant to an order of the Federal High
Court, the JRETF executed a search and seizure order on certain lenders.
The team extracted valuable evidence and in some
circumstances prohibited or restricted continuing operations.
Irukera said the FCCPC has served the order on banks,
suspending operations of accounts which some of the companies used to conduct
transactions under probe.
“Further, the Commission also entered and served
wide-ranging orders on Google LLC (Play Store) and Apple Inc. (App Store) to
enforce the withdrawal of certain applications”, he noted.
Those affected were found to have engaged in inappropriate
conduct or the use of their application to violate the rights of consumers.
Additionally, the court order prohibits the acceptance and
presentation of new applications for the same purpose without regulatory
assessment and approval.
“The investigation is still active and ongoing. The JRETF
expects further and similar action as it continues to gather additional
intelligence to that effect.”
The businesses raided on Friday, March 11 were directed to
desist the interest compounding and loan repayment/collection practices under
investigation.
”Violators will be subjected to the full extent of the law
including prosecution (without an option of administrative regulatory
resolution)”, the statement warned.
The FCCPC added that its orders are without prejudice to
existing borrowers repaying legitimate loans or modifications to previous terms
and conditions.
The Task Force urged citizens to provide useful information
and evidence that may assist the ongoing inquiry.
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