FCCPC Demands Legal Action Against Illegal Digital Finance Firms

The Federal Competition and Consumer Protection Commission (FCCPC) has called for law governing digital banking operations to prevent unlicensed operators from posing a threat to Nigerians.

During a summit on World Consumer Rights Day in Abuja, the Executive Vice Chairman of FCCPC, Babatunde Irukera, said lack of existing laws hinder the commission from protecting Nigerians from the risks associated with the sector.

Irukera said the raid led to the confiscation of 119 laptops, eight mobile phones and one hard drive that were used to harass defaulters of loans which has led many to face depression, and some committed suicide because they could not withstand the backlash of the actions of the operators.

“Some of these operators are not registered by the Central Bank of Nigeria (CBN), so we have to look at how we can bring them under our regulatory framework so that we can hold them to book. Otherwise, there is nothing we can do as an agency to sanitise and prosecute them. With this, Nigerians will continue to fall prey to their gimmicks.” He says.

Godwin Emefiele, governor of CBN, who was represented by its director on Consumer Protection, Rasheeda Monguno, noted that while digital financial has made transactions seamless and has incorporated many Nigerians into the financial sector, it has also exposed Nigerians to high fraud risks.

She added that, apex bank is working on a regulatory framework that would protect consumers from online lenders.