Illegal financial institutions operating in Lagos were shut down on Friday by the Federal Competition and Consumer Protection Commission, in conjunction with the Independent Corrupt Practices and Other Related Offenses Commission, the National Technology Development Agency. information and the Nigerian police.
Among the financial institutions concerned were GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni.
The raid, the FCCPC said, was in response to customer complaints about abusive practices by financial institutions.
Speaking at the raid, FCCPC Director General Babatunde Irukera explained that customers had accused financial institutions of violating their privacy in their debt collection campaign.
He said the agency had been investigating the allegations since 2020.
He said: “This information started quite a long time ago. A while ago when the country was in lockdown in 2020 due to the pandemic, we started to see the increase in money lenders”
“Because there was a lockdown due to the pandemic, people needed a small, easy loan, which is understandable. But over time, people started complaining about lenders’ bad practices, so we started tracking them.”