The inter-agency Joint Regulatory and Enforcement Task Force (JRETF) led by the Federal Competition and Consumer Protection Commission, FCCPC has advanced investigations with respect to digital money lenders.
The Chief Executive Officer of FCCPC, Mr Babatunde Irukera in a statement said “in furtherance to an Order of the Federal High Court procured by, and granted to FCCPC, the JRETF executed a search and seizure Order on certain digital money lenders”.
Mr Irukera who is also the Chief Executive officer of the JRETF noted that as part of the operation, the JRETF, Nigeria Police Force and bailiff of the Federal High Court searched locations of the money lenders, extracted valuable evidence and in some circumstances prohibited or restricted continuing operations.
According to the statement, “In addition to the physical operation noted above, the Commission entered and served Orders on multiple financial institutions freezing or suspending operations of certain accounts which some of the money lenders have used to conduct implicated businesses or transactions subject of investigation.”
“The Order of the Commission also prohibits acceptance and presentation of new applications for the same purpose without regulatory assessment and approval.”
“The investigation is still active and ongoing. The JRETF expects further and similar action as it continues to gather additional intelligence to that effect.” It added.
Mr Irukera admonished all the businesses that were subject of regulatory intervention on Friday, March 11, 2022, to cease and desist the interest compounding and loan repayment/collection practices that are the objects of this investigation.
“In the event that any of these businesses continue in any of this conduct, or the Commission receives credible evidence of such, violators will be subjected to the full extent of the law including prosecution (without option of administrative regulatory resolution).” He stated
Mr Irukera added that the obligation to comply with the orders of the Commission extends to all operatives, employees or agents of the affected businesses.