A former lawmaker representing Kaduna Central in the Senate, Senator Sani Shehu, has claimed that former President Muhammadu Buhari destroyed Nigeria’s economy, saying the former president is responsible for the current economic hardship in the country.
Sani stated this in an interview on Channels Television’s Politics Today on Wednesday.
He said some of the economic policies that President Bola Tinubu is implementing now, which triggered the economic hardship, should have been implemented by Buhari.
The Kaduna senator said former President Buhari failed to implement the policies, which consequently allowed the economy to deteriorate.
Sani said, “We must be very factual and realistic with ourselves; the problem we find ourselves today, originated, was engineered, fabricated and sustained by the Buhari administration.
“The Buhari administration, institutionally, fundamentally destroyed the Nigerian economy,” he addded.
Sani absorbed Tinubu’s blame for the current situation, noting that, having said he (Tinubu) would implement the policies he has implemented so far during the campaign, Tinubu did not deceive Nigerians.
He said, “When Tinubu took over, he knows there is not going to be subsidy and to be realistic, he was very frank during his campaign. I am going to remove subsidy and whatever protest that will come out of it I will not back down’ and then people went ahead and voted for him, so he has not deceived Nigerians.
“Now he is in power, we are paying the price for the mistake of the past, for the failure of the past and for what we have refused to do in the past, so this is the reality,” he said.
Recall that some Nigerians in some states have taken to the streets to protest the situation over the economic hardship occasioned by some of Tinubu’s policies, especially the removal of petrol subsidy and the unification of forex rate.
The Nigeria Labour Congress (NLC) also joined the protest over hardship on Tuesday with a nationwide action.
But, Sani said the NLC has the right to protest, adding that the protest to be wary of is not that of the NLC but the one that may be carried out by unorganised civil society.
Joseph Aloba, the father of the late singer, Ilerioluwa Aloba aka Mohbad, has called on the Nigeria Police to summon the wife of his deceased son, Omomunmi, to provide insights into the death of his son.
He disclosed this in a statement signed by the family and sent to PUNCH Metro on Wednesday.
PUNCH Metro had reported that Aloba filed a suit seeking to call more witnesses in the bid to unravel the cause of the death of his late singer-son.
In the application signed by his legal team, the witnesses requested to testify before the court include, “Ayobami Fisayo aka Spending; Boluwatife Adeyemo aka Darosha and Ibrahim Owodunni aka Prime Boy; all of whom were with the deceased at the material time.”
It was noted that the testimonies of the witnesses in the ongoing inquest would provide more factual, evidential, and better light on the circumstances leading to Mohbad’s death.
Meanwhile, the Aloba family in a statement sent to PUNCH Metro on Wednesday, Mohbad’s father said Omowunmi’s testimony could also be instrumental in shedding more light on the circumstances leading to the death.
The statement read in part, “It has come to our attention that Omomunmi Adebanjo, the wife of the late Mohbad, has expressed her knowledge of critical information related to his death. We urge the relevant authorities to extend an invitation to Omowunmi Adebanjo to provide her testimony and insights into this tragic event. We believe that her cooperation and testimony could be instrumental in shedding light on the circumstances leading to Mohbad’s demise.”
While citing the sensitive nature of the matter, he also urged the police to provide security to ensure her safety whenever she comes forward to share her knowledge with the authorities.
“We implore you (the police) to prioritise this investigation and take swift action to uncover the truth behind Mohbad’s death. The Aloba family and the public deserve closure, and justice must prevail,’ the statement added.
While noting that another sitting at the coroner inquest was coming up in a few days, he stated that “the opportunity is still there for you to go and tell them the truth you know.”
The deceased singer’s father also disclosed that he had filed a suit seeking a Deoxyribonucleic Acid (DNA) test for his grandson, Liam, at the Magistrates’ Court sitting in Ikorodu, Lagos State.
Mohbad’s wife, Omowunmi, recently stated in an Instagram post that she had since November been waiting for a court order to proceed with the paternity test.
While stating that he owed Liam a duty to protect him, Mohbad’s father added that the move was to resolve the issues surrounding his paternity for future purposes.
He said, “Since the issue of Liam Aloba’s paternity is in the public domain, especially on social media, this information will continue to be there for now and maybe forever. As a grandfather to Liam Aloba, I owe the duty of protecting him now, and the future is at stake if the issue of paternity is not resolved now, and it will hurt her and the son in the future. Anyone can call him any bad name which I will not want that to happen to him now or in the nearest future. Wunmi Adebanjo, as a mother to Liam Aloba too, it is my thinking and belief that you will not like a situation where, in the future, people will use or call Liam Aloba any unpleasant name.
‘Since she wants a court order to do the DNA, my legal team has approached the court in that regard, the suit has been filed. Her legal team should do the needful whenever the court serves them by not frustrating the process so that Liam Aloba, whether he is my grandson or not, deserves the right to a good life without any blemish to his name and his existence on earth. If this is the only thing you can do to save him from future embarrassment, please do it for him as a mother; let him have a peaceful life to live.”
Mohbad died on September 12 at the age of 27, with circumstances surrounding his death sparking controversies on social media.
Being a former record label signee of Marlian Music owned by Naira Marley, Mohbad left the label in February 2022.
The Lagos State Police Command had on September 18, 2023, inaugurated a 13-man special investigation team to probe the singer’s death.
His death also led to the arrest of Naira Marley, and controversial Lagos socialite, Balogun Eletu, aka Sam Larry, amongst others.
The body of Mohbad was on September 21, 2023, exhumed for autopsy to unravel the cause of his death.
The state Police Public Relations Officer, Benjamin Hundeyin, had tweeted in September 2023 that an “autopsy has been concluded” and the police were “awaiting result.”
In the course of their probe, the police declared Primeboy wanted on October 4, 2023, after which he turned himself in two days after.
Meanwhile, Aloba, in November 2023, had stated that nobody should collect his son’s body for burial without his authorisation.
In an interview with PUNCH Metro in December 2023, Hundeyin reiterated that the command had not received the report of the autopsy conducted on Mohbad from the pathologists.
The lingering economic hardship may be compounded as telecom operators insist on increasing their tariffs. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has been advocating for a tariff hike, citing rising operational costs.
In a recent meeting with the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, ALTON Chairman Engr. Gbenga Adebayo, argued that the tariffs set by the regulator were insufficient in light of escalating operational expenses.
He pointed out that, unlike the telecoms sector, other heavily regulated industries like power and insurance had seen price increases to reflect macroeconomic changes and the increased cost burden on operators.
While noting that the current price of services as pegged by the Nigerian Communications Commission (NCC) is unsustainable, the ALTON Chairman said: “Insurance prices have risen 200 per cent with power raising prices by over 40 per cent.
Telecommunications is the only sector that has not experienced a pricing regulatory framework review raising prices notwithstanding local and global macroeconomic realities.
“Not only has this impaired investor confidence and depleted available investible funds necessary to optimise infrastructure for improved service delivery, but it also threatens the very sustainability of our members’ operations.”
He also noted some challenges such as multiple taxation and deficiency in infrastructure. Industry players had urged the Federal Government to prioritise investment in telecoms infrastructure to aid the digital economy in the country.
They said the government should woo foreign investors into Nigeria and also encourage the local investors to put their money into infrastructural development, especially in the rural areas.
It is believed that opening up the rural areas will expand broadband and consequently improve the digital economy. Meanwhile, the telecoms operators have said they are investing in infrastructure to improve the quality of service as well as the quality of experience for all subscribers.
They said: “This is evidenced by the continued investments in network coverage and capacity to improve overall quality of service for the benefit of our esteemed customers.”
Adebayo urged the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, to collaborate with the operators to tackle the challenges affecting the industry, especially the infrastructure challenge, while urging the government to come up with policies that would make the business easy for them.
“However, as the Honourable Minister may be aware, ALTON’s members have continued to encounter strong macroeconomic headwinds, which have occasioned tough operating conditions, leading to a decline in CAPEX (domestic) and foreign direct (capital inflow) investments into the industry by 30.37 per cent and 46.9 per cent respectively between 2021 and 2022.
“It is ALTON’s considered view that many teething investment-impacting causal factors need to be definitively addressed to help deepen investment with the overall objective of driving increased CAPEX deployment for overall QoS improvement in line with the targets of the strategic plan to achieve 50 per cent improvement in QoS by the end of 2024,” he said.
Speaking on the damages done to telecoms infrastructure, Adebayo said there was a need to curb the acts by vandals, saying all these have been the factors that may make them increase their tariffs.
He said: “Telecommunications serves as an ‘enabler’ for all other critical infrastructure and infrastructure sectors vital to national productivity and security.
“To function optimally, telecommunications infrastructure relies on complex and interconnected support ecosystem consisting of fiber, satellites, towers, base stations, switches, data centers, etc., which need to function uninterrupted for delivery of optimal QoS.
“There have, however, been incidences of adverse cross-sectoral impact on QoS arising from damage to such infrastructure due to excavation during civil works such as road construction, deliberate/negligent vandalization and sabotage as well as theft of cable, equipment, and supplies such as diesel, generators and batteries, undue delay in issuance of site approvals for new towers/base stations as well as harassment of staff /site access denial by state/local agencies to enforce levy payments.”
Air Peace has announced N1.2 million on its London route for Economy class effective from March 30.
A statement by the airline’s Corporate Communications Lead, Mr Stanley Olisa also said Business class tickets can be got for N4 million.
According to the statement, “The flight schedules for Air Peace London route are now available on our website, and we are crashing the price of flight tickets.
“A return economy class ticket goes for N1.2 million, while a return business class ticket sells for N4 million. Nigerians studying in the United Kingdom can also now access their special 15 percent rebate on the already reduced economy fares.”
The airline had announced a special fare for Nigerian students in the UK when it hosted travel agents in Lagos in preparation for the launch of the London route.
Olisa also disclosed that London would be the airline’s seventh international destination since kicking off operations, almost 10 years ago.
President Bola Ahmed Tinubu has said his administration is working to ensure that Nigeria is reformed for greater efficiency with a particular emphasis on systematically inculcating fairness and equity in all aspects of the national life.
Addressing Afenifere leaders at the residence of Pa Reuben Fasoranti in Akure, Ondo State, on Wednesday, the President emphasized his commitment to leading Nigeria towards economic and social prosperity.
This was disclosed in a statement by Ajuri Ngelale, Tinubu’s Special Adviser on Media and Publicity.
”Nigeria will survive the current economic challenges. There is light at the end of the tunnel. I requested the job, and I am not complaining about it. I take full responsibility.
”We are meeting our obligations to the international community. To lenders, we have not defaulted, and we are not going to default. We are navigating the twists and bends on the road to Nigeria’s prosperity,” Tinubu affirmed.
On reforming Nigeria, the President said his task will be to ensure fiscal and true federalism, as well as the broad-based manifestation of the philosophy of “what is sauce for the goose is sauce for the gander.”
He acknowledged the understanding and support of all Nigerians in the face of the tough but temporary economic conditions, assuring them that their patience and perseverance will not be fruitless.
He stated “The economic challenges we have endured since assuming office are not new to me. As the former governor of Lagos State, I faced similar calls for my resignation. But, through perseverance, Lagos emerged as the fifth largest economy in the entire continent of Africa. We must manage this moment with wisdom and grow Nigeria responsibly.
“I campaigned for this office to serve Nigeria’s interests, and I was elected. Some said I would not last in the tribunal and came up with all sorts of predictions, but even when in court, I remained focused.
“We cannot allow Nigeria’s economy to be exploited. We cannot abandon our economy to marauders. I am determined to re-engineer our finances and curb selfish interests permanently.”
Speaking on behalf of Afenifere, Pa Olu Falae, a former Secretary to the Government of the Federation (SGF), who read the address of Pa Fasoranti, commended President Tinubu for his commitment to Nigeria’s progress and expressed support for his administration’s efforts.
“You have kept your word to return to this place where we all prayed for you, and this shows that you are a man of your word,” the elder statesman stated.
Pa Fasoranti asked President Tinubu to be fair and courageous, declaring that such traits were the hallmark of the Afenifere family.
“Today, you are carrying our flag. We are noted for integrity, competence, fairness, and courage. Your performance so far has shown that you understand the full gravity of your mandate, which is to show the Nigerian people that a good government is possible,” he said.
Presidential spokesman, Bayo Onanuga claims that Nigeria was in serious financial crisis when his principal, President Bola Tinubu assumed office as the country’s president.
Making this assertion while speaking on Channels TV’s Politics Today on Wednesday, Onanuga claimed that the President Bola Tinubu led government had to remove fuel subsidy and unify the country’s exchange rate to save the country’s economy from am imminent collapse.
He lamented that the President Tinubu administration had spent most of country’s revenue servicing debts.
“The President did not just wake up and said i’m removing subsidy or i’m trying to harmonize the exchange rate, things were terribly bad when he took over, and he needed to take those measures to save this country; this country was in trouble financially we had serious problems very high budget deficit, we were going to spend 97 per cent of our revenue on debt service alone. We were borrowing money to pay workers, things were getting out of hand and there is no way we would have continued that way,” he said.
His comment comes amid increased demonstration against Nigeria’s worsening economy.
Naija News recalls that President Tinubu had on assumption of office as the country’s president immediately removed fuel subsidy on fuel.
A move that is believed to have caused an unprecedented hardship in the country.
Al-Nassr forward, Cristiano Ronaldo has been suspended for one game after appearing to make an obscene gesture following their 3-2 win over Al Shabab.
This was confirmed by the Disciplinary and Ethics Committee of the Saudi Football Federation (SAFF) on Wednesday.
Ronaldo cupped his ear, before repeatedly pumping his hand forward in front of his pelvic area, in the direction of the Al Shabab fans after the final whistle.
This came as the supporters chanted Lionel Messi’s name.
The committee also said the Portugal captain has been fined 10,000 Saudi riyals ($2,666), which he will pay to the Saudi Football Federation and 20,000 riyals to Al Shabab to cover the costs of the complaint filing fees.
The committee said the decision is not subject to appeal.
[DailyPost]
The minister for Women Affairs, Uju Kennedy-Ohaneye, has advised Nigerian women not to shout back at their husbands to allow peace reign in their matrimonial homes.
The minister who stated during a Conference of Commissioners of State Ministries of Women Affairs in Nigeria, said avoiding trading words would prevent physical assault that may lead to injury or death.
She said: “I am equally begging my women not to look for trouble, not even at home. Maintain peace in your home because if a home is peaceful, the woman has 80 percent to contribute to that. If you need peace, you can equally achieve it.
“Keep your mouth shut. Talking back does not yield fruit, rather it leads to death and destruction, it leads to bringing up bad children for society.
“Keep your mouth shut, it does not make you a fool but a wise person. When the man is shouting and saying all sorts of things, act like a fool and keep your mouth shut.
“After a while, watch him. If he is a good man, he will come back to apologise. If he is not a good one, ignore him. Have what you want to do in your mind, but when we show who we are and we fight back, most times, it leads to hitting; you could be injured.
“The same man that injures you will come back to say I am sorry. What will you do? Will you kill him? Even if we come out to fight for you and you lose one eye, are we going to replace the eye? So prevention is better than cure.”
While advocating for the establishment a mobile court to try gender and sexual based offences, Mrs Ohaneye she would lead a protest to the office of the Minister of Justice and Attorney General of the federation to sign the law.
She added that the ministry would also launch an integrity group to monitor all funds donated to uplift women in the country.
Operatives of the 6 Division, Nigerian Army Port Harcourt has, again, uncovered over 40 illegal local wells containing crude oil in Rumuekpe community, Emohua Local Government Area of Rivers State.
The troops uncovered the illegal dugout wells during a sweep and clear operation on the Trans Niger Delta Pipeline (TNP) led by the General Officer Commanding (GOC) 6 Division, Major General Jamal Abdussalam.
Our correspondent observed during the operation that the wells, which mostly were 12 by 12 in both width and length sizes, about 40 feet in depth.
Addressing journalists at the illegal site, Major General Abdussalam revealed that oil thieves in the area had invented a technique of digging deep into the ground until they reached the crude oil, adding that it is another scope to the fight against oil theft.
He explained that the discovery is a new dimension and an eye-opener in the war against oil theft and illegal oil bunkering in the Niger Delta region.
“If you are not here, you may not believe what we are seeing. In this area, our troops have discovered more than 40 dugouts and these dugouts are not meant to access pipelines, they are dug out directly into the ground like well and surprisingly have access to crude oil. This is the first time I’ve seen this type of thing.
“We have been conducting in the past two days and the aim of the operation was to clear the Trans-Niger Delta Pipeline because we have been receiving complaints from SPDC of breaches on the TNP and based on that we decided to conduct an operation to sweep and clear the pipeline, it was on the cause of that operation, we came to this particular location and you journalists have seen what we have seen.
“You can see all around us are pits and very deep, you will need ladders to have access into it and at the bottom is crude oil, so they are just fetching crude just like water from a well.”
The GOC, who expressed sadness on the illicit act, said: “This is very sad and with this, we have discovered a new dimension to oil theft. It is entirely a new dimension. This is not an issue of pipeline vandalism, this one is digging directly into the ground and having access to these resources.”
He noted that he would call the attention of the authorities to the development, adding that troops would be permanently stationed at the site to halt the activities of the criminals.
“I will bring the attention of the relevant authorities to this site so that they can come and see what can be done. But in the meantime, our men would be deployed so that we can stop people from accessing the area because it is even dangerous to the people involved in this because a little fire will kill everyone conducting this dastardly act.
“It is also not good for the system. See how the whole place has been dug out. It is also very dangerous for people who are not even aware of this because they can come blindly at night and fall inside this pit and that is the end. We would do the needful. We would not get tired until we rid this area of these criminals.
He also stated that those arrested at the site are in custody as the investigation continues.
“Few people have been arrested, they are in our custody. We hope they will give us useful information that would lead to the arrest of others that are involved in this act.”
One of the arrested suspects revealed that the site is owned by some sections of the community and they are paid N40,000 for each well dug.
According to the suspect, “We have part of the Community here. It is owned by the community and not by one person. Some kindred and not all of them.
“How we dig to get oil is that sometimes, a place like here, we dig here like from 10 to 15 feet before we see gas. When we dig it and notice that the gas is rising, if we do not run out on time people might suffocate and die. So we bring them out half dead. But the unlucky ones die. When we bring them out, we pour them water and give them coke. So, after the gas comes out, the oil will come out. And another set will come to fetch it after we have finished digging it.
“It’s not only me, sometimes we could be about three to four and we are being paid N40,000 for one well,” the suspect revealed.
The Association of Table Waters Producers (ATWAP) has said the price of pure water may be sold for N100 per sachet due to the high cost of production materials.
Naija News reports that the association made this known on Tuesday during a press conference held in Lagos on the rising production cost of packaging materials and its effect in Nigeria.
The association’s President, Clementina Ativie, said they have been facing many challenges, such as the high cost of diesel, lack of power, and the high cost of production.
He added that the current price of water sales reflects the country’s situation, and there is nothing they can do about it.
He said, “Pure water is sold for N50 now, and it is even going up to N100 per one. At our own end, there’s nothing we can do. The cost of production is high.
“As at last year December, we were buying materials (nylon) for N1,100 per KG. The 6 kg of nylon is now N3,600/N3,700. The cost of treatment is also high. The increment for these materials comes at 3 times in one week. It is also difficult for us to increase the price of water.
“If ordinary Nigerians can’t afford pure water, I don’t know where we are going. Every water producer is funding the pure water factory on personal pockets or borrowed money.
“Many banks don’t give pure water producers loans. We want Nigerians to bear with us. We don’t want Nigerians to buy water at more than N20 per sachet. The cost of production including the price of diesel has affected so many things.”
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The National Bureau of Statistics (NBS) has revealed that the price of local rice rose by 98.47 percent in January 2024.
Announcing the development in its latest food price watch released for January 2024, the statistics bureau detailed that the kilogram price of local rise rose from N514.83 in January 2023 to N1,021.79 in January 2024.
Naija News reports that the NBS data further detailed that the average price of boneless beef rose by 37.08 per cent between January 2023 and January 2024.
Also, the price of brown beans reportedly rose by 64.42 per cent between January 2023 and January 2024.
The report read, “Selected Food Price Watch for January 2024 shows that the average price of 1kg Rice local sold loose stood at N1,021.79. This indicates a rise of 98.47% in price on a year-on-year basis from N514.83 recorded in January 2023 and 11.31% rise in price on a month-on-month basis from N917.93 in December 2023. The average price of 1kg of Beef boneless increased by 37.08% on a year-on-year basis from N2,418.91 in January of last year (2023) to N3,315.78 in January 2024. On a month-on-month basis, the average price of this item increased by 5.37% from N3,146.94 in December 2023. The average price of 1kg of Beans brown (sold loose) rose by 64.42% on a year-on-year basis from N593.96 in January 2023 to N976.58 in January 2024. On a month-on-month basis, it increased by 12.16% from N870.67 in December 2023.”
The National Agency for Food and Drugs Administration and Control (NAFDAC) has started shutting down some unregistered sachet water production factories in Anambra State.
The companies were said to be producing water in unhealthy environment and operating without subjecting their processes to regulatory standards.
Louis Mmadubuatta, Coordinator of NAFDAC in Anambra, told newsmen in Awka that the exercise was part of the routine surveillance of the agency with the aim of protecting the health of members of the public.
“We have over time visited a number of water factories that do not comply to good manufacturing standards and normally such places are shut until they comply and those we earlier closed have done so.
“Those places are sealed and we are not opening them until they respond to the regulatory action taken against them,” he said.
Mmadubuatta, who did not reveal the locations of the sealed companies for strategic reasons, warned companies engaging in illegal manufacturing of table water and other regulated products to desist from such activities
He said the companies should go to NAFDAC and register their products and those whose licenses had expired should endeavour to renew them.
“We are still embarking on massive sanction activities against erring companies,” he said.
The Coordinator urged members of the public to assist NAFDAC with information on illegal table water production activities going on in their neighbourhood for swift reaction while assuring them of anonymity.
He further advised that consumers should look out for product name, production and expiry dates, NAFDAC number and batch number and if they had doubts they should reach the agency.
(NAN)
The digital lending space in Nigeria is attracting more players by the day, leading to a steady increase in the number of loan app companies approved by the Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Nigeria (CBN).
From 211 at the end of 2023, the number of companies approved to operate loan apps in the country has risen to 263, according to the FCCPC’s database. This total includes those given full approval, conditional approval, and those licensed by the CBN.
According to the list published by the FCCPC, 215 companies have been granted full approval to operate as digital lenders in the country, while 38 companies have received conditional approval.
In addition to these, the FCCPC listed 10 other companies licensed by the CBN to operate loan apps, bringing the total to 263.
It is important to note that each of these companies operates through multiple apps, providing different types of loans.
This expansion comes amid the issue of rising non-performing loans in the digital lending space and a growing list of illegal apps leveraging technology to lure people into taking collateral-free loans with exorbitant interest rates.
Why more companies are moving into digital lending
According to some industry stakeholders, the allure of high interest rates charged by the loan apps is encouraging more companies to see business opportunities in digital lending.
However, the President of the Money Lenders Association, the umbrella body of registered digital money lenders in Nigeria, Mr. Gbemi Adelekan, said high-interest rates are only peculiar to lenders offering small and short-term loans, known as Nano loans.
For him, the main reason more players are coming into the digital lending space is because fintech is one of the major booming sectors in the economy and there is ease of entry.
- “I think more people are also coming into digital lending without proper risk assessment due to the minimal entry requirements and regulations,” he said in a telephone interview with Nairametrics.
Bandwagon effect
While noting that commercial banks are now also getting digital banking licenses separately from the CBN to be able to go into digital lending, Adelekan said:
- “You know how Nigerians are, once they see that one business is booming, they all move into it. If it’s stock, they move into it; if it’s hairdressing that is doing well today, everybody will rush it.
- “Meanwhile, as some people are rushing in, a lot of people are rushing out because of the risks involved and the rising non-performing loans. Recovering debt from the people is now becoming more difficult.”
Nairametrics recently reported that more Nigerians are now resorting to credit from loan apps to survive as the harsh economic conditions bite harder.
In some cases, there are no plans to repay the loans by the borrowers, while those willing to repay find themselves borrowing from one app to pay another. The lenders had also complained that this has also led to a dramatic jump in their non-performing loans (NPLs) as most borrowers are not paying back.
Loan apps’ interest rates
Meanwhile, amid complaints by borrowers that digital lenders in Nigeria are charging very high interest rates, the lenders said only the loans with high risks come with high rates. According to the President of the lenders, loan apps have not been able to increase their rates over the last two years.
- “We are not able to increase our interest rates because the customers will complain. The rate for our installment loan has been less than 5% per month over the last two years. But for those who do Nano loans, they are charging up to 15% because of the risks involved.
- These are small loans that are short-tenured for like 30 days. The risk is very high because you don’t do all the necessary checks that you are supposed to do, like checking bank statements, location verification, and all that, unlike installment loans where you do all that including confirming their salary.
- “That is where the new players are playing but the old players are running away from it because of the rising NPLs. The new players are coming in because they think everything is rosy,” he said.
Menace of unregistered loan apps continue
Despite the rise in the number of digital leaders that have registered with the FCCPC and secured approval to operate, hundreds of other unregistered lenders are still playing in the market and getting patronage from desperate borrowers.
As a result of their continuous atrocities which include defaming and harassing their customers through their contacts, the FCCPC said it has now placed 88 loan apps under its watchlist as it continues to work out modalities to sanitize the digital lending space.
According to the Acting Executive Vice Chairman/CEO of the FCCPC, Dr Adamu Abdullahi, the Commission is coming up with a new regulation that would address the challenges around debt recovery by the loan apps.
- “Yes, they give loans here and there and they must collect their loans back, but they do not have to go ahead and destroy families and lives in the process of collecting back their loans. So that is what this regulation that we’re coming up with will address. We are trying to balance everything,” he said.
[Nairametrics]