Unforeseen Departure: Babatunde Irukera’s Exit Casts Uncertainty Over Nigeria’s Digital Lending Reforms by FCCPC

Unforeseen Departure: Babatunde Irukera’s Exit Casts Uncertainty Over Nigeria’s Digital Lending Reforms by FCCPC

The recent termination of Mr. Babatunde Irukera, the Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), could potentially create a void in the consumer protection sector in Nigeria, particularly impacting the digital lending landscape where Mr. Irukera actively worked to regulate the operations of loan apps in the country.

President Bola Tinubu announced the dismissal of Mr. Irukera on Monday, along with the CEO of the Bureau of Public Enterprises (BPE), Mr. Alexander Okoh. This decision, as stated by the Presidency, is part of the administration’s initiative to restructure and reposition critical federal government agencies. Both dismissed executives are required to hand over their responsibilities to the next most senior officers in their respective agencies pending the appointment of new CEOs.

Under Mr. Irukera’s leadership, the FCCPC made significant strides in addressing consumer issues across various sectors, with a particular focus on the digital lending space. Despite challenges, the Commission achieved notable success by bringing disorderly loan apps under control through the Interim Limited Registration Framework and Guidelines. As of December 2023, 241 digital lenders have been registered, emphasizing the Commission’s commitment to overseeing ethical practices.

Mr. Irukera also recognized the need for further reforms beyond registration, particularly addressing the rising issue of loan defaults. He emphasized the importance of finding a balanced approach to loan recovery, advocating for responsible borrowing and lending practices. Despite his departure, the FCCPC’s mission to regulate and sanitize the lending space is expected to continue in 2024.

Beyond digital lending, Mr. Irukera transformed the FCCPC into an agency that championed the interests of Nigerian consumers. Through interventions, even on social media platforms, he held powerful companies accountable for infringing on consumer rights. The FCCPC, under his leadership, transitioned from a government-dependent to a self-funding agency, generating over N56 billion in 2023 through penalties imposed on defaulting companies.

With the FCCPC’s leadership position currently vacant, anticipation surrounds the announcement of a new CEO by President Tinubu. 

The hope is that the incoming CEO will build on Mr. Irukera’s legacy and continue the reforms initiated during his tenure. The challenge lies in whether the successor can lead with the same passion and dedication that characterized Mr. Irukera’s tenure at the FCCPC.