Unregistered online lenders in Nigeria would no longer be able to access mobile network, telecoms and digital payment services.
This follows a directive by the federal government to the mobile network operators, telecoms service providers and digital payment systems providers to discontinue all services to them.
Executive Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC) Mr. Babatunde Irukera, disclosed the new order in a statement.
Irukera said the FCCPC had ordered all operating payment systems including Flutterwave, Opay, Paystack and Monify to immediately cease and desist from providing payment or transaction services to lenders under investigation or not otherwise operating with applicable regulatory approvals.
“The commission has also ordered telecommunication/technology companies (including Mobile Network Operators (MNOs)) to cease and desist providing server/hosting, or other key services such as connectivity to disclosed or known lenders who are targets/subjects of investigation or otherwise operating without regulatory approval.”
He further said that in addition to the enforcement action(s) and in furtherance of the desire to promote fair, transparent and mutually beneficial alternative lending opportunities apart from traditional lending to consumers, the inter-agency Joint Regulatory and Enforcement Task Force had developed and mutually adopted a Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending, 2022 (now available at https://fccpc.gov.ng/resources-library/regulations/) as the first and interim step to establishing a clear regulatory framework, for online lending activities in the country.
Irukera explained that this regulatory framework on digital lending had “become enforceable immediately,” adding that henceforth “it requires permission to proceed in digital lending; it provides a limited moratorium period for existing businesses to comply in order to continue in digital lending.“The guidelines also mandate different service providers in the relevant ecosystem (such as banks, access/download platforms or stores, technology providers and payment systems) to require regulatory approval before providing services.”
The FCCPC expressed gratitude to victims and citizens who have either provided information or contributed to the investigation of the activities of illegal digital lenders.
