The war on illegal loan apps
The alarming rise of illegal loan platforms and their connection to the notorious “one chance” operatives is a pressing issue that demands urgent attention. In a move to address the growing menace, the House of Representatives has called for the closure of these illicit platforms, which are being used by criminals to extort money from unsuspecting victims. This decision, prompted by a motion presented by Representative Billy Osawaru, highlights the severe consequences of these operations and the pressing need for swift action to protect vulnerable citizens.
The activities of “one chance” operatives are not only heinous but also deeply exploitative. Victims of these scams often find themselves trapped in an intricate web of debt and abuse. As Osawaru pointed out, the criminals behind these operations subject their victims to physical and psychological torture, coercing them into handing over personal information. In many cases, this data, including phone numbers and bank account details, is used to borrow large sums of money from illegal and unlicensed loan applications. The victims are then burdened with massive debts that they are powerless to repay, often leading to a cycle of financial ruin and emotional distress.
What is perhaps most troubling is the complicity of some financial institutions in enabling this criminal activity. Osawaru’s concern about the reluctance of banks to intervene without a police report is not unfounded. The fact that many institutions are unwilling to take action to stop these illegal loans from being processed, unless officially instructed by law enforcement, demonstrates a disturbing lack of accountability. It is a clear indication that more stringent measures must be implemented to hold financial institutions accountable and ensure they take a proactive stance in preventing financial abuse.
Moreover, the involvement of FinTech operators like Opay and MoniePoint in these illegal loan schemes cannot be overlooked. While these platforms provide valuable services to millions of Nigerians, they are also being exploited by criminals who use them to facilitate illicit transactions. It is crucial that these companies, along with banks and the Nigeria Police, prioritise the protection of consumers from such exploitation. If the financial ecosystem is to remain trustworthy and secure, there must be greater cooperation between all stakeholders to combat these illegal operations.
The motion adopted by the House of Representatives is a step in the right direction. However, the closure of illegal loan platforms is only part of the solution. A more comprehensive approach is needed, one that addresses the root causes of this problem. There must be stronger regulations in place to monitor and control loan apps, ensuring that they operate within the confines of the law and are subject to rigorous oversight. Additionally, there is a need for more public awareness campaigns to educate Nigerians about the dangers of these illegal platforms and how to protect themselves from falling victim.
The Nigeria Police, banks, and FinTech operators must also be more responsive to reports of “one chance” operations and kidnapping incidents linked to these criminal activities. It is not enough to wait for formal complaints to be filed; there must be a more proactive approach to investigating and addressing these crimes. The safety and security of Nigerian citizens must be prioritised above all else.
The solution to the growing problem of illegal loan platforms and “one chance” extortion lies in a combination of legislative action, regulatory enforcement, and heightened public awareness. The House of Representatives’ decision to address this issue head-on is commendable, but it is only through sustained efforts from all sectors of society—government, financial institutions, and the public—that the scourge of illegal loan schemes and extortion will be eradicated. Nigeria’s future prosperity depends on a secure financial environment where citizens can access services without fear of exploitation or abuse.
