FG Bans Telecom Providers, Others From Providing Services To Online Money Lenders

By Tolulope Oke

The Federal Government (FG) has prohibited All mobile service operators, mobile telecommunications providers, and suppliers of electronic payment systems from providing their services to unlicensed online money lenders in Nigeria.

In a statement titled “Further and Continuing Investigation of Rights Violation in the Money Lending Industry and Release of Interim Regulatory Framework,” Mr. Babatunde Irukera, Executive Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), announced the restrictive order yesterday.

He released the statement right after the enforcement of a Federal High Court order against Soko Lending Limited, an alleged illegal lender.

Irukera said: “The FCCPC has ordered all operating payment systems including Flutterwave, Opay, Paystack, and Monify to immediately cease and desist from providing payment or transaction services to lenders under investigation or not otherwise operating with applicable regulatory approvals.

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“The commission has also ordered telecommunication/technology companies (including Mobile Network Operators (MNOs)) to cease and desist providing server/hosting, or other key services such as connectivity to disclosed or known lenders who are targets/subjects of investigation or otherwise operating without regulatory approval.”

The regulatory framework for digital lending, he explained, was effective instantaneously, and going forward, it requires permission to proceed in digital lending; it gives a short moratorium period for current enterprises to comply in order to continue in digital lending.

In addition to the enforcement action(s) and in furtherance of the desire to promote fair, transparent and mutually beneficial alternative lending opportunities apart from traditional lending to consumers, the inter-agency Joint Regulatory and Enforcement Task Force has developed and mutually adopted a Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending.