The Federal government of Nigeria has shut down some illegal digital lending companies. This decision comes after the committee charged with investigating reported unfair practices in the money lending Industry. In operation led by the Federal Competition and Consumer Protection Commission (FCCPC) and Independent Corrupt Practices and Related Offences Commission (ICPC), lending companies like GoCash, Sokoloan, Okash, Easi Moni, Kash Kash, and Easy Credit were close down over issues of registration, malpractice on customers and privacy violation in the process of recovering debts.
Nigeria has struggled with an alarming rate of corruption and illegal activities for years, resulting in stagnant growth in almost all sectors. Nigeria's government has proven itself a worthy regulatory body by curtailing this parasite before it spreads. It promotes confidence amongst the general public in exploring digital and Technological solutions. Still, at an early stage in the West African country, the drive for financial Inclusion and literacy is the future of development in the nation. The government aims to eliminate activities that might disrupt the goal.
The FinTech industry serves to help Nigerians and companies in the industry who offer loans pursue this purpose—putting Nigerians first and helping them meet urgent needs. However, sorting to cyberbullying and harassment is unprofessional. According to the FCCPC, the sanctioning of these companies will serve as an example to other upcoming and existing firms of the organization's commitment to cleanse the digital lending Industry of illegal practices.
Nigeria in focus:
Population: 206.1 million in 2020 as compared to 201 million in 2019
GDP: $432.3 billion compared to $448.1 billion in 2019
GDP per capita: $2,097 in 2020 compared to $2,229 in 2019