The Acting Executive Vice Chairman/CEO of the Federal Competition and Consumer Protection Commission (FCCPC), Dr Adamu Abdullahi, has said the Commission is forging ahead with a new regulation for the operations of loan apps despite the removal of its former boss, Babatunde Irukera.
Abdullahi stated this while appearing on a Channels TV live interview program monitored by Nairametrics. The Acting EVC said he had been the Head of Operations at the FCCPC during Irukera’s leadership and was part of investigations of loan apps and the development of regulations, and therefore ready to continue the development of the new regulation as planned by the former leader.
Before his removal in December last year, Irukera had announced that the FCCPC would this year develop a new regulatory framework to address Nigerians’ rising indebtedness to loan apps.
Nothing has changed
While noting that the FCCPC would continue with what the former FCCPC boss had been doing and even on a larger scale, Abdullahi said:
- “All the investigations regarding the loan apps and all the developments of the regulations were done with me as part of the team. Therefore, nothing stops our continuity in that respect. We will develop the additional regulatory requirements that are needed.
- “What we want to do is to ensure that the interests of the consumer are protected. We are working on this project along with the CBN which has the core competence in finance in Nigeria. Of course, the Data Protection Commission is also there as well as the EFCC and ICPC.
Identifying the loan apps
The Acting FCCPC boss said one big success the Commission had recorded in addressing the issues with loan apps was the identification of the companies behind the apps through its Interim Regulation.
According to him, before the regulation, there was no way to trace any of the companies operating the loan apps.
- “Before, when they did what they used to do, there was no way you could put names to the companies or their location. It took us a long time before we could identify where operating operating from.
- “What they used to do is immediately you get a loan from them they have access to your phone numbers. So, they can now go ahead and harass your family or employer. Some people lost their jobs through that. People even lost their lives. We don’t want that kind of harassment. What we want is to have a safe place where they can operate,” he said.
Abdullahi said the Commission is trying to strike a balance between the continuous operations of the loan apps and the customers’ defaulting in repaying their loans. He noted that despite the challenges, loan apps are playing important roles in the economy.
- “Yes, they give loans here and there and they must collect their loans back, but they do not have to go ahead and destroy families and lives in the process of collecting back their loans. So that is what this all this regulation that we’re coming up with. We are trying to balance everything,” he said.
