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Fintech negligence causing fraud among unbanked, middle class – EFCC

Published

5 months ago

November 23, 2024

EFCC Chairman, Olanipekun Olukoyede

Fintech negligence causing fraud among unbanked, middle class – EFCC

The Economic and Financial Crimes Commission (EFCC) has raised concerns about increasing fraudulent activities in Nigeria’s financial sector, particularly within the unbanked, under-served, and middle-class populations.

This was disclosed in a statement by the EFCC, Ola Olukoyede, the EFCC Chairman, highlighted these concerns during a recent engagement with stakeholders in Abuja.

He attributed this trend to negligence by some fintech companies in implementing robust Know Your Customer (KYC) protocols.

Olukoyede noted that many fintech firms fail to adhere to strict KYC guidelines, particularly when onboarding customers for tier-one accounts. He highlighted that this negligence creates vulnerabilities that fraudsters exploit.

“Olukoyede observed that there was a high level of poor internal control by fintechs at the level of the unbanked, the under-served and the middle-class population spectrum,” the statement read.

” There’s quite a whole lot of fraud that goes around that particular level, so the issue of KYC (Know Your Customer) is very important, especially because of the issue of how fintechs open tier-one accounts, sometimes without attention to KYC. And people take advantage of this and are quick to commit fraud through this negligence,” Olukoyede stated.

The EFCC chairman stressed the importance of fintech companies revisiting their onboarding processes to prevent loopholes that fraudsters exploit.

Collaboration with EFCC

Highlighting the role of fintech firms in combating fraud, Olukoyede called for increased cooperation between fintech operators and the EFCC.

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He emphasized that companies must see themselves as stakeholders in the fight against corruption and respond promptly to regulatory requests.

“Increasing your level of collaboration with the EFCC would mean seeing yourselves as stakeholders in the fight against corruption. We would like you to respond to us when we make inquiries and requests,” he stated.

The EFCC expressed its willingness to partner with Moniepoint in addressing fraud-related challenges, emphasizing the importance of collaboration in combating financial crimes.

“On our part, we are open to whatever it is that you want us to do. We value it that you are here today to seek a stronger tie and collaboration.

“When we have stakeholders come in and want to be part of what we are doing, majorly stakeholders like you, it gives us joy because we know that no one man can fight corruption alone. The collaboration you seek tells us that you want to strengthen your system; you want to be able to create more internal controls.

“You want to be able to put in place things that will mitigate those weaknesses that will lead to fraud within your system, that’s what we do. Our core mandate is the enforcement and investigation of economic and financial crimes. So, we’re glad and wish to collaborate with you,” he stated.

Fintech negligence causing fraud among unbanked, middle class – EFCC

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Obi lied, I blocked him from visiting IDP camp – Alia

Published

11 hours ago

April 25, 2025

Trends Admin

Obi lied, I blocked him from visiting IDP camp – Alia

Governor Hyacinth Alia of Benue State has given the major reason for blocking major opposition figure Peter Obi from visiting the IDP camp in the state.

Alia accused the Labour Party leader of violating standard protocols by failing to inform the governor ahead of his visit as courtesy demands.

Alia, in an interview with TVC on Thursday, said Obi was blocked from visiting the Benue IDP camp because his “intention” was unknown, and he violated protocols by not informing him in advance.

“A very respected Peter Obi was a governor. If you are coming into someone’s state, there are protocols. Very high personality; you are coming into someone’s state, and your party does not even know you are coming.

“I, the sitting governor, did not know you were coming. Then, you are going into where I’m protecting even the most, the IDP camp. It’s my duty to protect them. They’ve been displaced. I need to protect them even some more. I don’t know the intent you have,” Governor Alia said.

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He added, “Is it not courteous enough for me to know as a sitting governor and even to provide more security for you and prepare the minds of the IDPs that a guest is coming to visit them?”

The governor denied claims that he was unreachable when the former Anambra governor called to inform him of his visit.

“No, that’s not the right narrative. I can never politicise that. I’m the one bearing the brunt, pain and sorrows of the IDPs in my state,” Alia stated.

He added, “If he (Obi) couldn’t reach me, I have a chief of staff, I have an SSG, (and) I have a PPS.”

Last week, Alia said he could not guarantee the safety of any individual or group visiting Benue without his knowledge or clearance, barring Obi from visiting the state.

However, Obi expressed displeasure at how Governor Alia’s government allegedly politicised his planned visit to the troubled Benue.

Obi lied, I blocked him from visiting IDP camp – Alia

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Zulum meets with Cameroonian troops after deadly Boko Haram attack

Published

11 hours ago

April 25, 2025

Trends Admin

Zulum meets with Cameroonian troops after deadly Boko Haram attack

Governor of Borno State, Babagana Zulum, has commiserated with the Multinational Joint Task Force (MNJTF) following the recent Boko Haram assault in Wulgo, a border town with Cameroon.

Governor Zulum paid a visit on Thursday to Cameroonian troops under Sector 1 of the MNJTF, where he also extended sympathies to both the government and citizens of Cameroon over the devastating attack.

In Wulgo, located roughly 15 kilometres from Gamboru Ngala, the governor was welcomed by Major General Godwin Michael Mutkut, the Force Commander of the MNJTF.

“I am here to commiserate with you, and with the government and people of the Republic of Cameroon, over the recent unfortunate incident. I wish to salute your bravery and unwavering commitment to safeguarding lives and property in the region,” stated Governor Zulum.

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The governor also reaffirmed Nigeria’s commitment to supporting the MNJTF and Cameroon in their fight against terrorism and insurgency in the Lake Chad region.

“The Government of Nigeria will explore all possible avenues to complement the efforts of the Multinational Joint Task Force and the government of Cameroon to bring lasting stability to the Lake Chad basin,” he assured.

Alongside the Federal Government’s support, Governor Zulum pledged additional assistance from Borno State to the troops operating in the region.

The governor was accompanied by Senator Kaka Shehu Lawan of Borno Central, Special Advisers Hon. Idrissa Jidda and Hon. Mustapha Dalatu, Hon. Yuguda Saleh Vungas, Chairman of the Borno State Social Investment Programme, the Chairman of Ngala Local Government Area, and his Principal Private Secretary.

Zulum meets with Cameroonian troops after deadly Boko Haram attack

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Tribunal upholds Nigerian government $220m fine against Facebook, WhatsApp

Published

11 hours ago

April 25, 2025

Trends Admin

Tribunal upholds Nigerian government $220m fine against Facebook, WhatsApp

The Competition and Consumer Protection Tribunal on Friday delivered its judgement in the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC against the Federal Competition and Consumer Protection Commission (FCCPC), affirming the Commission’s authority and actions in nearly all the contested issues.

A statement signed by Ondaje Ijagwu, Director, Corporate Affairs of the FCCPC, said the tribunal specifically determined that the Commission should comply with prevailing laws, discharged its mandate, and exercised its powers within the confines of the 1999 Constitution (as amended).

It ruled that the multiple actions by WhatsApp and Meta, for which the Commission made findings of violations, were correctly identified, and that the Commission did not err in making those findings.

“In addition to upholding the major aspects of the FCCPC’s Final Order, the Tribunal awarded the sum of $220 million against Meta Platforms Incorporated and WhatsApp LLC as an administrative penalty, and further awarded $35,000 to the FCCPC as cost of investigation.

“The tribunal’s three-member panel was led by Honorable Thomas Okosun,” the statement said.

WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias (SAN) while the FCCPC’s legal team was led by Mr. Babatunde Irukera. Both teams had made their final arguments on behalf of their respective clients on January 28, 2025.

PlatinumPost reports that FCCPC had on on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers.

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The case arose from a 38-month joint investigation initiated by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp.

Dissatisfied with the Order last year, Meta and WhatsApp appealed to the Tribunal, challenging both the legal basis and the findings of the Commission.

While ruling on Meta’s appeal, the Tribunal also validated the Commission’s investigative procedures and processes.

The Tribunal resolved Issues 1 to 7 largely in favour of the FCCPC, dismissing the appellants’ objections to the Commission’s findings, orders, and legal competence.

One of the central issues (Issue 3) which alleged a breach of fair hearing, was decided in favour of the Commission, with the Tribunal affirming that the FCCPC fully discharged its quasi-judicial responsibilities by affording the appellants ample opportunity to respond.

The Tribunal found no violation of constitutional due process.

On Issue 4, which questioned the Commission’s powers in matters of data protection and privacy, the Tribunal held that the FCCPC acted within its statutory mandate, reaffirming its authority under Section 104 of the FCCPA to regulate competition and consumer protection even in regulated industries.

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On Issue 5, which challenged the Commission’s findings regarding Meta’s privacy policies, the tribunal also resolved in the FCCPC’s favour. The Tribunal found no error in the Commission’s conclusions and held that the privacy policy in question did, in fact, offend Nigerian law.

While Issue 7 was largely resolved in favour of the Commission, the Tribunal set aside Order 7 of the Commission’s Final Order, stating that it lacked sufficient legal basis.

While expressing delight at the landmark judgement, FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, thanked the Commission’s legal team for their exceptional diligence and forensic skills in assembling evidence and marshalling their argument.

He restated FCCPC’s unwavering commitment to not only championing the rights of Nigerian consumers but also ensuring fair business practices in the country in accordance with FCCPA (2018) and consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu.