The Federal Competition Consumer Protection Commission, FCCPC in collaboration with National Information Technology Development Agency, the Independent Corrupt Practices and other Offences Commission, and the Nigerian Police, have raided some On line money lending companies along Opebi road, Ikeja Lagos.
Among the Online money lenders whose Apps are downloaded from Google play store were GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni, Soku loan, Niger Cash and Fast money
Speaking during the raid, the Chief Executive Officer, FCCPC, Mr Babatunde Irukera, explained that the major reason for the raid is that the companies violate people’s privacy.
On the last floor of a four story building at 77 Opebi road, Ikeja, more than three hundred young men and women were seen facing their laptops and carrying out official duties assigned to them by their employers including text messages and calls to their debtor’s phone contacts.
The story was not different at number 22 Opebi road, Ikeja, Lagos
The raid according to Chief Executive Officer of FCCPC, Mr Babatunde Irukera, was in response to the complains from people about the malpractices from these these On line money lenders.
He said that agency started the processes in 2020 when the country was on lockdown due to the pandemic, there was rise in money lending business becauce of increase in demand for small easy loans.
Mr Irukra alleged that over a period of time people started complaining about the malpractices of the lenders including interest rate which seems to violate the ethics of how lending is done and what seems to be naming and shaming , violation of people’s privacy with respect to how these lenders recover the loans”
Hence the need for FCCPC with other regulartory agencies to look into these businesses.
He noted that location of these Shylock money lenders was a difficult nut to crack as some of them have moved from one place to the other.
The FCCPC boss, however alleged that the companies are either Nigerian companies or registered in Nigeria and most of the companies operate from the same place and many of them are actually operated by the same person and not registered in Nigeria with the Corporate Affairs Commission pointing out that they do not have any license to do their business”
Mr Irukera said that FCCPC has written to App companies to suspend operations of these Apps and the court issued a warrant to FCCPC to proceed with an investigation into a search and seizure.
He added that FCCPC has also issued multiple orders , two of them are going to vendors, App stores and Google stores where some of these apps are available to shut down so that people will not be victimized anymore, though he made it clear that not all money lenders are operating illegally.
The young men and women who claimed to be University graduates appealed to the federal government fo create more jobs for youths and attested to the fact that they do track their debtors who refused to pay through their phone contacts.
Quite interesting to note that between 5-7 companies are operating at the same location
The raid which took a whole day was not an easy one for the regulatory body as most of employees refused to give reliable information on what they do.