FCCPC: Consumer credit scheme will address unethical practices of loan sharks

The Federal Competition and Consumer Protection Commission (FCCPC) says the consumer credit scheme introduced by President Bola Tinubu will address loan sharks excesses.

Adamu Abdullahi, acting executive vice chairman of FCCPC, spoke on Sunday during an interview with the News Agency of Nigeria (NAN).

Reacting to unethical practices by some unregistered digital money lenders, Abdullahi said the scheme would provide Nigerians with access to collateral-free soft loans.

He said the scheme would also help reduce the rate at which Nigerians use unregistered loan applications that tend to harm and shame their character.

The vice chairman said despite the commission registering some digital money lenders, many unregistered lenders continued their unethical practices towards customers.

“What is happening is because the availability of loans is not there in Nigeria but you can see that this government through its renewed hope agenda came up with a credit scheme,” the FCCPC boss said.

“It has now gone into effect but it is only for government workers for now, it is going to address the gap that the apps were addressing before.

“So once we have that kind of possibility in which a person can get a loan from a recognised institution, banks, it will be a soft loan without collateral.

“The only collateral you will need is your national identification number (NIN) and once you have NIN and bank verification number (BVN), that means you are identified and people know that you are the one that has taken this loan and they know how to get their loan back.

“When that gap is now filled, these people (loan companies) will sit up and do the right thing or they fizzle out of existence.”

On April 24, the federal government approved the takeoff of the first phase of the consumer credit scheme and launched a portal for Nigerians to express interest in the scheme.

The government said the scheme, which aims to broaden consumer credit availability, will be rolled out in phases, starting with civil servants, and then extended to the general public.

‘WE’VE COMMENCED INVESTIGATIONS INTO UNFAIR PRACTICES IN THE MARKET’

Abdullahi said the commission had initiated investigations into certain unfair practices and irregularities in the market.

“We frown against practices that are monopolistic, we frown against abuse of dominant position in the market,” he said.

“In the competition aspect, we found out that there are some companies that are doing some anti-competitive practices and this has led to a sanction against a major international company.

“Beyond the sanction, the aspect that is not well reported is the aspect that we have made them to do some advocacy in the field of tobacco smoking for the young and under-aged.

“We have ongoing investigations in other major companies which we found are indulging in other anti-competition practices.”

He said advocacy posed a significant challenge for the commission, adding that it plans to establish a presence in all 774 local government areas (LGAs).

Abdullahi said this would be accomplished through a memorandum of understanding (MoU) with another government agency to educate people about their rights.