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Nigerian govt to regulate loan apps operations, after raiding Sokoloan, others, freezes accounts

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Nigerian govt to regulate loan apps operations, after raiding Sokoloan, others, freezes accounts

The Federal Government through its agency, Federal Competition and Consumer Protection Commission (FCCPC), has concluded moves at regulating the activities of lending apps in Nigeria.

Loan apps in the country have been operating without regulation or guidelines for years, with some reportedly operating without license, a situation that has pitched them against FCCPC.

According to a report by NAN, during the World Consumer Rights Day in Abuja on Tuesday, the head of FCCPC, Babatunde Irukera, said activities of the digital money lenders would now fall under regulatory control.

Irukera’s statement follows FCCPC’s raid on Soko Loan and its other sister-apps, Fast Money, Go Cash, Okash, Kash Kash, Speedy Choice and Easy Moni on Saturday, which led to closure and seizure of laptops and phones.

Already, Google and Apple have been directed by FCCPC to delist some of the loan apps, as the agency begins an inter-agency collaboration with NITDA and ICPC to investigate the digital money lenders.

Read also: Nigerian govt fines lender, Sokoloan, N10m for data breach

The inter-agency called, Joint Regulatory and Enforcement Task Force (JRETF), also has Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), and National Human Rights Commission (NHRC).

FCCPC has secured a search and seizure order from the Federal High Court to aid their investigation against the loan apps, a separate statement on the agency’s website had disclosed.

This order led to “multiple financial institutions freezing or suspending operations of certain accounts which some of the money lenders have used to conduct implicated business or transactions subject of investigation.” the statement reads.

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