Online lending: Fed Government probes firm over illegal activities

Online lending: Fed Government probes firm over illegal activities

The Federal Government, through the Nigeria Data Protection Bureau, has said it is investigating the role of an unnamed consulting firm in supporting the illegal activities of some online lenders in Nigeria.



The National Commissioner of the bureau, Dr. Vincent Olatunji, disclosed this.



Notably, a media report in May revealed that an unnamed consulting firm was backing the operations of Soko Lending Company, an online lending platform.



Subsequently, the media report prompted the investigation by the NDPB.



Federal Government



Specifically, the National Commissioner of the NDPB said; “We got a lead that one major consulting firm in Nigeria is working with them…We are trying to go against that one too. So, we are investigating it.”



Further, he disclosed that there is a joint committee, which includes government agencies such as; the National Information Technology Development Agency; the Federal Competition and Consumer Protection Commission; Independent Corrupt Practices and Other Related Offences Commission; the Central Bank of Nigeria; Nigeria Police Force, the Nigerian Communications Commission and the NDPB.



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According to the National Commissioner, this committee intends to introduce a regulatory framework for loan applications in the country.



Additionally, he said, “The good news is that we now have a national joint committee of a lot of Federal Government institutions; such as NITDA, NDPB, FCCPC, ICPC, Nigeria Police, CBN and the NCC.



”We are doing a joint collaboration to look at this issue. The CBN will approach it from the part of the regulatory body for the financial sector. The ICPC will look at the perspective of financial crime.  NITDA will look at it from the perspective of technology. NDPB will look at it from the perspective of privacy and protection. NCC will look at it from the perspective of telecommunication.


“So, we are looking at regulations and technology, and trying to issue a framework; which we are going to issue shortly to guide them so that they don’t just take advantage of Nigerians,” he said.


About The Author

Chuks Ofurum is a staff of 1ST NEWS. He writes the weekly column "The Mouthpiece". [email protected]

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