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Hundreds of digital lenders operate illegally — FCCPC

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The Federal Competition and Consumer Protection Commission (FCCPC) has disclosed that hundreds of digital lenders are still operating illegally in Nigeria.

This is even as the commission has decried its inability to ban them, despite several efforts.

The chief executive officer of FCCPC, Babatunde Irukera, while reacting to a post on X alleging that FCCPC’s officials are allowing the illegal Digital Money Lenders (DMLs), to continue to operate because they are taking bribes from them, disclosed that, wallets on Payment Solution Service Providers’ (PSSP) platforms are used by a number of illicit DMLs also referred to as loan apps.

“Despite the FCCPC’s efforts to legalise the operations of the loan apps through its registration framework, hundreds of digital lenders are still operating illegally in the country.

“Sadly, the agency cannot stop the operations of illegal loan apps despite its efforts,” Irukera regretted.

Explaining further, the CEO said, though DMLs work online, once their bank accounts are frozen, they transfer their transactions to PSSP wallets.

“No way to stop DMLs operating actually. They spring up daily in different places on the internet using APKs and when bank accounts are frozen, they operate by wallets through PSSPs. We are chasing every day, but won’t ever stop them all. Nothing to do with bribes please,” Irukera added.

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