The federal government has moved to investigate rights violations by online money lenders otherwise known as loan sharks in Nigeria, Babatunde Irukera, consumers’ rights attorney has announced.

The joint regulatory committee consisting of the Federal Competition and Consumer Protection Commission (FCCPC), the Central Bank of Nigeria (CBN) and the Economic Financial Crimes Commission (EFCC) has commenced rights violation investigation into the activities of online lending platforms according to a statement signed by Mr Irukera who is the chairman of the committee on Monday. 

The committee is expected to spearhead efforts to regulate a number of potentially questionable practices by certain money lenders, also known as loan sharks.

Mr Irukera who is also the Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC) said that the Independent Corrupt Practices Commission (ICPC) and the National Information Technology Development are also members of the new regulatory committee. 

According to him, the committee decided to work together, take immediate enforcement action against known violators while investigating others, and pursue criminal prosecutions where appropriate.

Mr Irukera bemoaned the activities of the companies whose stressing loan terms had quickly evolved into a domineering and oppressive practice that targeted society’s most vulnerable describing them as “arbitrary unjust and unreasonable.”

“Continuing complaints about questionable repayment enforcement practices including public shaming and violations of privacy have led to significant and understandable consumer aggravation and dissatisfaction.

“Others are arbitrary, unjust, unreasonable, or exploitative interest rates and or loan balances calculations, harassment and failure of consumer feedback mechanisms, among others have caused consumer aggravation,” Mr Irukera lamented. 

Mr Irukera further explained that many of the loan firms are not legally established or licensed by the appropriate authorities to engage in the services they provide. 

“Initial inquiries demonstrate that many of the purported lenders are not legally acceptably established or otherwise licensed by the appropriate authorities to engage in the services they ostensibly provide.

“A joint taskforce of analysts and enforcers was also created and immediately activated.

“The agencies recognised and welcome products and providers that bridge the lending gap for consumers who would otherwise be ineligible for conventional loans from traditional financial institutions.

“However, this must occur within legally acceptable parameters of transparency and fairness,’’ Mr Irukera added.

Many Nigerians have been victims of unregistered loan companies who operate solely online. These companies have been widely denounced for exploiting Nigeria’s economic downturn to target the vulnerable, loaning them monies with unreasonable interests and violating their privacies to reach their contacts and spread damning information about the borrower in situations of default.

According to Mr Irukera, the commission will now receive complains and information on the identities of businesses or individuals participating in these acts through it’s email: lenderstaskforce@fccpc.gov.ng.