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  • FCCPC not a price control board – Bello

    FCCPC not a price control board – Bello

    The Federal Competition and Consumer Protection Commission (FCCPC) is not a Price Control Board, the Executive Vice Chairman, Mr. Tunji Bello, has said.

    He spoke at the 2025 World Consumer Rights Day celebration today, in Abuja.

    According to him, there has been a misconception among some members of the public who expect the FCCPC to act as a Price Control Board, insisting that the commission had no such mandate.

    His words, “Permit me to briefly respond to a very concerning trend. Which is what I consider the misconception of the role of FCCPC in some quarters.  I observe this tendency among some of our commentators in the media space who misunderstand the provisions of the law and inadvertently mislead the public.

    “To be sure, Sections 17 and 18 of the Federal Competition and Consumer Protection Act (FCCPA) 2018 expressly vest the Commission with the statutory authority to regulate competition and consumer protection across all sectors in our national life which is consistent global best practices.

    “This notion was, in fact, recently affirmed by the court of competent jurisdiction. In one word, the law charges the FCCPC to champion the rights of consumers of goods and services in Nigeria.

    “It is, therefore, very disturbing to hear or read parochial arguments of those who, out of ignorance of the law, seek to erect walls of sophistry against FCCPC in its discharge of this clear mandate.

    “The Commission has never claimed or pretended to be a price control board. Rather, we get involved when the rights of consumers are breached or when the market is being manipulated in a manner that impedes fair competition.”

    He said that the celebration was an opportunity for the FCCPC officials to rededicate themselves to championing the interests of the Nigerian Consumers.

    He said, “By the FCCP Act of 2018, our mandate is clear. Which is the promotion and protection of the interests and welfare of consumers by ensuring fair competition and ethical business practices. In the context of a just transition, this means.

    Ensuring affordability and accessibility. That is, sustainable choices should not be expensive or difficult to access; they should be within the reach of all consumers.

    Empowering consumers. That is, providing accurate information and raising awareness about the impact of their choices, so that they can make informed decisions.

    Holding businesses accountable. That is, ensuring that industries comply with environmental and ethical standards while preventing deceptive marketing of so-called ‘green’ products.

    Driving innovation and fair competition. That is, encouraging businesses to develop sustainable products and services while ensuring a competitive market that benefits consumers.

    Protecting vulnerable communities. That is, ensuring that low-income groups are not disproportionately burdened by the costs of the transition to sustainability.”

    Mr. Bello said the theme for this year’s celebration “A Just Transition to Sustainable Lifestyles” was apt considering the existential challenges facing humanity across the world at the moment.

    He observed that most countries were contending with inflationary trend which has been traced to the economic  disruption occasioned by COVID 19 of 2020 and Russian-Ukrainian war which brought fresh disruption to the global food supply chain, thus worsening the plight of consumers of goods and services.

    According to him, “Against this backdrop, it is therefore a matter of necessity that we rethink our choices and fashion new coping strategies to adapt to new realities.

    “Looking ahead, the world is undoubtedly moving towards a greener, more sustainable ways of living. The overarching challenge is ensuring that no one is left behind. Sustainability should not be a privilege for a few, but a right for all.

    “A just transition means making sustainable products and services affordable, accessible, and fair to consumers while ensuring that businesses and industries uphold responsible practices.”

  • Loan App Surge: 380 Lenders Approved, Consumer Fears Grow

    Loan App Surge: 380 Lenders Approved, Consumer Fears Grow

    The landscape of digital lending in Nigeria is undergoing a dramatic transformation, with the number of approved loan app soaring to 380 this February, a significant jump from 320 in October of the previous year. This surge, reflecting approvals from both the Federal Competition and Consumer Protection Commission (FCCPC) and licenses granted by the Central Bank of Nigeria (CBN), signals a burgeoning appetite for accessible financial services. However, this growth is shadowed by a rising tide of consumer apprehension regarding the operational ethics of some digital lenders.

    According to the FCCPC’s database, a substantial 322 digital lenders have received full approval, while 42 operate with conditional approval. Additionally, 16 companies are licensed by the CBN, culminating in the 380 approved entities. While this expansion suggests increased financial inclusion, it also raises critical questions about regulatory oversight and consumer protection.

    “It is not enough to issue a licence or grant approval based on the fact that they have met certain conditions set by the FCCPC, the regulator needs to monitor these lenders and ensure that they are operating in ethical ways, especially how they disburse loans and how they recover their loans,” stated Mr. Gbolagunte Ajayi, a financial analyst. His words underscore a growing sentiment that regulatory action must extend beyond mere registration to encompass active policing of lending practices.

    Consumer Experiences: A Growing Sense of Unease

    The concerns voiced by consumers are not merely abstract fears. They reflect real-life experiences, often laden with emotional distress. My chats with a few people regarding the saving capabilities of these loan apps tended to view them as a trap rather than a saviour.

    Omowunmi revealed that she obtained a loan from a well-known vendor out of an urgent need. She voiced her displeasure with the time element and interest rate. “I was offered N44,000 to refund N76, ooo over a two-month period,” she said. This ran counter to the advertisement that said I might receive N100,000 and repay N100,400 over three months. Kemi herself expressed dissatisfaction about the unwanted messages and calls she received from the agent urging her to take out a loan in order to obtain a reduced interest rate.

    Read Also: Nigerian Students Get Two-Year Grace Period for Student Loan Repayment

    Daniel bemoaned the automated calls that occur when a loan default occurs. “Do they think I will be forced to pay for all the calls? I receive up to 35 calls every day telling me to pay. When I phoned their centre to report that my device had a problem and I was unable to access my account to make a payment, the representative asked me to borrow a device, log into my account, and make the payment. She then provided her account information to complete the payment, but regrettably, it was unsuccessful. When the loan was past due, I received forty calls from a machine.”

    These narratives paint a picture of a sector where the lines between legitimate lending and predatory practices blur. The use of harassment and threats, reminiscent of unregulated “loan sharks,” by some licensed apps further exacerbates consumer anxiety. This raises a critical question: how can regulators ensure that the benefits of digital lending, such as increased financial access, are not overshadowed by unethical practices that exploit vulnerable individuals?

    Regulatory Response and Economic Implications

    The FCCPC acknowledges the challenges and has taken steps to address them. Adamu Abdulahi, Executive Commissioner of Operations at the FCCPC, emphasised the commission’s efforts to identify and hold loan app operators accountable through its Interim Regulation. He also mentioned that 47 loan apps have been delisted from the Google Play Store, and 88 are under close watch. “The main aim of the registration and approval of digital lenders in the country is to identify the companies behind the apps through its Interim Regulation to be able to hold them responsible for any infraction,” he clarified.

    Despite the challenges, the FCCPC recognises the vital role loan apps play in the Nigerian economy. These platforms offer crucial financial services to individuals who may be excluded from traditional banking systems, contributing to financial inclusion. However, a balance must be struck between fostering innovation and safeguarding consumer rights.

    The rapid expansion of the digital lending sector necessitates a robust regulatory framework that not only approves lenders but also actively monitors their operations. As we navigate this evolving financial landscape, it is imperative that consumer protection remains at the forefront, ensuring that the promise of accessible finance does not come at the cost of ethical integrity.

  • FCCPC probes GTBank, MTN and Air Peace over alleged customer rights violations

    FCCPC probes GTBank, MTN and Air Peace over alleged customer rights violations

    The Federal Competition and Consumer Protection Commission (FCCPC) said it has launched a major inquiry into widespread consumer complaints against leading players in the banking, telecommunications, and aviation sectors comprising GTBank, MTN, and Air Peace. 

    The Commission disclosed this in a statement signed by its Director of  Corporate Affairs, Ondaje Ijagwu, issued on Sunday. 

    According to the statement, the inquisitions, which will begin on December 3rd, 4th, and 5th respectively, are intended to address issues of poor service delivery, exploitative practices, and potential consumer rights violations. 

    Allegations against the companies 

    FCCPC said  Guaranty Trust Bank (GTB) is being investigated over reports of network failures that hinder customers from accessing their funds or using banking applications. 

    “In the telecommunications sector, MTN Nigeria faces questions regarding persistent complaints of undelivered data services, unexplained data depletion, and inadequate customer care. 

    “Similarly, Air Peace Limited will address allegations of exploitative ticket pricing, including significant price hikes for bookings on certain domestic routes,” the Commission stated. 

    Legal backing 

    FCCPC said the inquiries are being conducted under the Federal Competition and Consumer Protection Act (FCCPA) 2018, specifically Sections 17, 18, 32, 33, 80, 110, 111, 112, and 113, which empower the Commission to investigate and resolve practices that undermine consumer rights, disrupt markets, or create unfair competition. 

    • It added that the engagement with these companies would provide a platform to address consumer concerns, clarify business practices, and enforce compliance with regulatory standards.  
    • The companies will be required to appear before the Commission on designated days to provide information and responses to enable the Commission to make determinations and resolve pending issues promptly. 

    “This action reflects the Commission’s commitment to safeguarding consumer rights, fostering a fair marketplace, and ensuring accountability across all sectors. 

    “We urge consumers to continue to report instances of poor service delivery or exploitative practices to the FCCPC through its official channels,” the Commission stated. 

    What you should know  

    The allegations of network failure against GTB may not be unconnected with the bank’s recent transition to a new core banking application, which disrupted its services for weeks. 

    Last week, the bank issued an apology to all its customers, with explanations that it faced difficulties in the process of transitioning to a new core banking system, Finacle Suite of Core Banking Application. 

  • FCCPC Clarifies Position on Price Regulation Amid Market Concerns

    FCCPC Clarifies Position on Price Regulation Amid Market Concerns

    The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that it has no intention of regulating prices in the Nigerian market, Okay.ngreports.

    This assurance was provided in a statement issued on Tuesday by the commission’s spokesman, Ondaje Ijagwu, in response to concerns raised by the Organised Private Sector and other stakeholders.

    Ijagwu emphasized that the FCCPC’s recent directives, which have prompted debate, are focused solely on curbing exploitative practices and ensuring a competitive marketplace.

    The statement was made to address misunderstandings following the commission’s call for businesses to cease price gouging and price fixing.

    “We categorically assert that prices in a competitive marketplace are determined solely by the forces of supply and demand. Price control is entirely outside the scope of our responsibilities,” the statement read. “We have never considered, nor will we ever consider, intervening in the market to regulate prices. Any claims to the contrary are baseless.”

    The FCCPC made it clear that while external factors such as fluctuations in foreign exchange rates and the removal of fuel subsidies have significantly impacted pricing, these circumstances do not justify unfair practices that exploit consumers.

    Citing the cement industry as an example, the commission highlighted a recent instance where the need for its intervention became evident.

    “Abdul Samad Rabiu, Chairman of BUA Cement, disclosed that despite efforts by his company to sell cement at a fair price of N3,500 per bag, dealers inflated prices to as much as N7,000 to N8,000 per bag. This situation exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing,” the statement noted.

    The FCCPC reassured the business community that its actions are not intended to stifle private enterprise but to protect consumers from harmful practices. The commission reiterated that its role is to maintain a fair market environment where consumers are not taken advantage of, rather than controlling market prices.