Open Letter to the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission, Mr. Tunji Bello

Dear Mr. Bello,

I am writing to bring to your urgent attention a matter of great personal concern, one that I believe reflects a troubling trend in the regulatory oversight of the loan sector under the Federal Competition and Consumer Protection Commission (FCCPC). While the Commission has historically played an important role in curbing the excesses of loan sharks in Nigeria, I am disheartened to report that there seems to be a significant lapse in oversight recently, as I have personally experienced with Phoenix Payment Solutions Limited, operators of the Nairacup Loan App (listed as company number 107 on the FCCPC website).

A few months ago, in a desperate need for cash, I sought a loan through Nairacup after failing to secure funds from family or friends. Upon opening the app, I was shocked to discover that the loan terms involved an additional N100,000 in interest on a N100,000 loan for just seven days. Alarmed by the exorbitant rate, I immediately shut down the app. However, within minutes, I received the full loan amount in my account without any application or consent on my part.

I promptly contacted Nairacup via the email provided in the app, explaining the situation and requesting that my details be removed from their records. Unfortunately, I received no response. I also tried calling the number listed in the app, but it was unreachable.

Seven days later, I began receiving persistent calls and threatening messages from Nairacup representatives. I attempted to explain the situation to one of their agents, but my concerns were dismissed. Eventually, I reluctantly agreed to repay the loan, which had ballooned to over N200,000, in installments. I even made the first installment payment. However, the harassment escalated when Nairacup began contacting my personal contacts, spreading false claims that I had died in a car accident—an outrageous and deeply distressing lie.

Faced with this unwarranted defamation and harassment, I took action. I reported the matter to several authorities, including NITDA, NPDC, and FCCPC, both through email and Twitter. To my dismay, I received no response from NITDA or NPDC, while FCCPC was the only agency to initially acknowledge my complaint. The Commission’s Twitter handler instructed me to submit my complaint via an online platform, which I did promptly, providing all the necessary evidence, including threatening messages and data breaches.

What followed was shocking. A few days later, I received a notification stating that my complaint had been closed—without any investigation or communication from the FCCPC as to why it had been dismissed. I subsequently reached out to FCCPC’s Twitter account to inquire about the closure of my complaint, but despite having read my messages, there has been no response.

Emboldened by the lack of accountability, Phoenix Payment Solutions Limited continued its harassment, sending additional defamatory messages and publicly exposing my personal data, including my BVN and email. Just two days ago, I received another round of messages calling me a thief and a fraudster. Even when I told them I would not respond further until the authorities concluded their investigation, they sent me a screenshot of a similar complaint lodged with FCCPC by another customer, suggesting that their harassment would continue unabated.

Upon reviewing Nairacup’s app on the Google Play Store, I discovered that numerous other Nigerians have faced similar issues, with unsolicited loans being disbursed and victims being defamed thereafter. I also contacted Google regarding the data breach, but my concerns were dismissed without proper attention.

This raises serious questions about the FCCPC’s commitment to consumer protection. Why was my complaint closed without any investigation? Does this suggest that there may be staff within the FCCPC who are compromised or too lenient in their dealings with such companies? At the very least, citizens deserve protection from the harmful practices of these loan companies.

Mr. Bello, I urge you to act decisively in addressing this issue. It is essential that the regulatory framework put in place during Mr. Irukera’s tenure is maintained and strengthened. The gains made in regulating loan companies must not be undone, and individuals who fail to uphold the Commission’s duty of care should be held accountable.

The consequences of inaction are severe, as such practices not only harm the financial well-being of Nigerians but also push vulnerable individuals into emotional distress and potential harm. I hope that the FCCPC will take immediate steps to clamp down on the operations of predatory loan companies and restore public trust in its ability to protect consumers.

By Anonymous (E.J)