This is not a laughing matter but everywhere in Nigeria, someone is chasing someone, in the financial sector. Now the consumer protection watchdog has recruited fintechs to chase online lenders. But you know what? These fintech companies have no chance since some of these online lenders are NOT even registered in Nigeria. It is like a voodoo how they still operate with bank accounts to cause so many problems.
Like I explained in a banking conference in South Africa when someone tried to emphasize Nigeria’s paltry national budget (~ $42 billion depending on your exchange rate) to South Africa’s $157 billion, Nigeria is a place where most things are outside the power of governments. In South Africa, you pay taxes on your properties and lands.
In Nigeria, there is nothing like that at scale and people keep their funds. If you include those informal non-receivables, Nigeria’s budget would be much higher (a 0.5% annual tax on properties and lands in Lagos, Abuja and River State will add so much to the respective jurisdictional/national budgets). Unfortunately for the government, the money is with the people and there is nothing to spend.
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That explains why a lending company has become invisible and invincible because the government has no way to stop it since it never even registered with the government! In physics, you have optical illusion; here, you have financial illusion. You keep chasing but you never get there.
Read the head of the consumer protection (FCCPC), Mr. Babatunde Irukera.
“The information available to the commission demonstrates that Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names.
“It is covering a significant share of the digital or online lending market, and one of the most prolific actors in violating consumer privacy, fair lending terms, and ethical loan repayment/recovery practices.
“Prior to this operation, the commission had previously, on March 11, 2022, carried out a similar enforcement action with respect to multiple lenders; which action and continuing investigation has reduced previously high and escalating unethical, obnoxious, and unscrupulously exploitative practices in the industry.
“With the operations today, the commission expects an appreciable additional reduction in these unacceptable practices. The commission has also today entered further Orders that will disable or diminish violators’ ability to devise circumvention efforts or alternative mechanisms to circumvent the objective of the investigation and protection of citizens.’’ executive chairman of FCCPC, Mr. Babatunde Irukera
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