Nigerian government has shut financial institutions operating online without authorisation.
Some of the affected financial institutions include: GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, Easy Moni and Sokoloan.
The Nigerian authorities say they are not registered in Nigeria with the Corporate Affairs Commission and are not licensed to operate.
The Federal Competition Consumer Protection Commission with the Independent Corrupt Practices and other Related Offences Commission, National Information Technology Development Agency and the Police raided their offices in Lagos State, southwest Nigeria.
The high interest rates charged by the online financial institutions, sometimes up to 45%, are said to violate the rules and ethics of the lending profession.
Their naming and shaming of loan defaulters is also said to be a violation of people’s privacy. They commonly publish the names and pictures of their loan defaulters and the amount borrowed with even the telephone contacts of the defaulters and other customers.
Some people patronise them because they lend up to half a million naira within hours of application and without collateral.
Nigeria has written to global app companies like Google and Apple to suspend the operations of the illegal online lenders. Nigerian banks have also been asked to freeze their business accounts.
The Federal Competition Consumer Protection Commission sought and obtained a court order for the shut down.
