May 27, 2024

Loan Apps: FCCPC to Address Rising Debt with New Policy



The Federal Competition and Consumer Protection Commission announced plans to create a new regulatory framework to address Nigerians’ growing reliance on digital money lenders, often known as loan apps.


The Commission’s Chief Executive Officer, Mr. Babatunde Irukera, revealed this on Monday while appearing on a TVC live program. Irukera stated that debt to DMLs has become a major industry issue.


While the Commission has been successful in decreasing abuse and harassment by lending apps, he claims that Nigerians who have borrowed from the platforms have continued to fail. According to Irukera, increased debt could lead to the demise of digital lenders, who are also playing crucial roles in the economy.


While emphasizing that the Commission was dissatisfied with its accomplishments, he stated that attempts are still being made to resolve the remaining 20%.


He stated that while fintech is new and expanding around the world, the limited and interim regulatory framework for loan apps is continuously changing.


According to him, digital money lending fills an important societal void; therefore, establishing the optimal regulatory ecology for that also necessitates learning from the industry and how it operates.


The FCCPC has registered over 200 loan apps under the interim regulatory framework as part of its efforts to clean up the digital lending business by ending unethical practices of defaming and harassing borrowers.

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