FG intensifies effort to regulate digital financial schemes in Nigeria

The Federal Government is intensifying efforts to curtail the excesses of digital financial schemes in a bid to save Nigerian citizens from fraud and exploitation.

Speaking on Tuesday in Abuja to mark World Customer Rights Day, the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo said consumers are the most critical aspect of the value creation chain.

“They actively and collectively drive the innovative and creative process of producers,” he said.

While commending the Federal Competition Consumer Protection Council (FCCPC) for organising the forum, Adebayo noted that technology has been leveraged by businesses to support their existing operating model in ensuring that they give the best value to their customers and gain a competitive advantage in the consumer market.

“The financial sector is one in which technology has aided in various ways in delivering optimal services to the consumers; hence I am happy that the theme for today’s forum is ‘fair digital finance.’

“Digital financing includes all processes, applications, a variety of tech-enabled products and business models that have been incorporated together as a product mix to transform the financial services sector.

“For me, leveraging technology in the financial services sector has significantly improved the lives of consumers in many ways – for instance by providing various alternative means for the populace to be included in the financial space.”

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He stated that digital financing, “as a subsector has also helped other businesses, especially Micro Small and Medium Enterprises (MSMEs) by aiding payments and facilitating business transactions, thus contributing to the dynamism, effectiveness and competitiveness in these markets and accelerating inclusive growth.

“However, technological advances also come with challenges and the consumer is exposed to new risks. These risks range from invasion of privacy and data theft to cybercrime and Ponzi schemes.

“The average consumer needs to be protected from these risks by ensuring that they are fully aware of the intricacies of these products and ensuring they make the best choices based on their interests as this will prevent them from being mistreated or misled by opportunists ready to take advantage of such situations.

“I am certain that the FCCPC, as it has been doing, will continue to create strategies and measures to facilitate the access by all citizens to safe products, secure the protection of rights for all consumers in Nigeria, and promote fair, efficient and competitive markets in the Nigerian economy.”