The Federal Competition and Consumer Protection Commission (FCCPC) has highlighted the usage of wallets on Payment Solution Service Providers’ (PSSP) platforms by numerous illegal digital money lenders (DMLs), commonly known as loan apps, to conduct their transactions.
CEO Babatunde Irukera recently disclosed this information while responding to a call made by the Nigeria Inter-Bank Settlement System urging banks to remove PSSP, Switches, and other entities from payment options.
Four days ago, reports surfaced that NIBSS had instructed Deposit Money Banks to exclude PSSP from their outward payment channels.
Despite efforts, FCCPC expressed the challenge of completely halting PSSPs’ operations. Irukera explained that although DMLs function online, they shift their transactions to PSSP wallets when their bank accounts face freezing.
Additionally, addressing a claim on X alleging FCCPC officials’ involvement in permitting illegal DML operations due to alleged bribes, Irukera dismissed the accusation as false. He emphasized the complexities of ceasing the operations of these digital lenders.
“No way to stop DMLs operating. They spring up daily in different places on the internet using APKs, and when bank accounts are frozen, they operate by wallets through PSSPs. We are chasing every day, but we will never stop them all. Nothing to do with bribes, please.”
