The Federal Government of Nigeria has on Thursday ordered financial technology (FinTechs) companies to stop providing payment or transaction services to a selected online money lenders. The same order barred telecommunication companies as well from providing hosting, server or key services to these loan sharks.
Driving the news
The order issued by the FG through the Federal Competition and Consumer Protection Commission (FCCPC) includes Flutterwave, Opay, Paystack and Monify. And all Mobile Network Operators (MNOs) operating in Nigeria.
- The selected online lenders which the duo are to stop providing services to include loan sharks who are under federal investigation or who are operating without regulatory approvals.
- This is coming just a few months after FCCPC directed both Apple and Google to take down the applications of the loan companies from their online stores.
The loan companies’ crime
Back in March 2022, the federal government set up a joint committee to investigate the operation of online money lenders in Nigeria.
The committee revealed that some loan companies were operating without registering with the Corporate Affairs Commission (CAC) as well as violating the rights of Nigerians. They also engaged in cyberbullying and charging exorbitant interest rates. Some of the loan companies guilty of these offenses include GoCash, Okash, EasyCredit, Kashkash, Speedy Choice and Easy Moni.