At the resumed hearing on Wednesday, the Federal Competition and Consumer Protection Commission (FCCPC) informed the Federal High Court in Abuja that repeated attempts to serve Toriola and the others with court documents had been deliberately thwarted. 

Representing the commission, legal counsel Nsitem Chizenum stated: “We have made several efforts and we equally used the bailiff of this court to serve them, but it seems they were evading service, my lord.”

The FCCPC had filed a two-count charge against MTN Nigeria Communications Plc, Toriola, Chief Corporate Services Officer Tobechukwu Okigbo, and Regulatory Affairs General Manager Ikenna Ikeme. 

The charge (FHC/ABJ/CR/354/2024), dated 19 July 2024 and filed three days later, alleges deliberate failure to comply with a lawful request for documents during an ongoing investigation. It also accuses the executives of obstructing regulations to probe MTN’s compliance.

None of the defendants appeared in court. No lawyer represented them either. According to Chizenum, the FCCPC has now involved the Nigeria Police to help ensure the accused are brought before the court. The judge, Justice Hauwa Yilwa, has set 25 September 2024 as the new date for arraignment.

The first count accuses the defendants of failing to produce documents requested via a formal summons on 17 May 2024. A follow-up extension, granted by the commission on 5 June, was also ignored.

The second count states that by refusing to respond to statutory notices, the defendants obstructed the FCCPC’s ongoing inquiry, an offence under Sections 33(3) and 111(1) of the FCCPC Act, 2018.

This is not Toriola’s only brush with regulatory accusations. Earlier this year, in a separate case, the Nigerian Copyright Commission (NCC) dragged MTN and its CEO into another courtroom drama. 

The commission alleges that between 2010 and 2017, MTN unlawfully used copyrighted music by Nigerian artist Maleke Moye as caller tunes without the artist’s permission. 

Others named in that case include MTN executive Nkeakam Abhulimen, Fun Mobile Ltd, and its CEO Yahaya Maibe. That case is still pending before Justice Inyang Ekwo.

The Federal Competition and Consumer Protection Commission (FCCPC) had removed 47 unregistered loan apps from the platform as part of its investigation to curb illegal lending practices. However, many of these apps have turned to using Android Application Packages (APKs) to reach their customers.

APKs allow users to download apps directly via shared links, bypassing the need for official app stores. This tactic has enabled unregistered loan apps to continue their activities, avoiding compliance with FCCPC regulations.

These apps have been notorious for their aggressive and often illegal debt recovery methods, including harassment and defamation of borrowers. By sharing these APK links, the loan apps circumvent the restrictions imposed by the FCCPC and continue to target vulnerable consumers.

Gbemi Adelekan, Chairman of the Money Lenders Association, said these unregistered apps exploit regulatory loopholes to operate freely. He noted that these apps often extend unsolicited loans and use unethical means to recover debts, causing significant distress to borrowers.

In contrast, licensed Digital Money Lenders (DMLs) adhere to the laws and guidelines set by the FCCPC, promoting fair lending practices. Adelekan pointed out that while most licensed DMLs operate ethically, the few unregistered apps damage the industry’s reputation with their unscrupulous tactics.

The FCCPC, under the leadership of Dr. Adamu Abdullahi, is concerned about the rising infractions by these loan apps. In addition to delisting 47 apps, the Commission has placed 88 more on a watchlist and is considering involving law enforcement to address the issue more effectively.

This move aims to bolster consumer protection and maintain accurate standards in Nigeria’s digital lending space. The Commission’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, established in 2022, was designed to ensure fair and transparent lending practices and to protect consumer rights.

Dr Abdullahi highlighted that infractions have been increasing as more Nigerians turn to loan apps due to the challenging economic conditions. The FCCPC’s actions come in response to the proliferation of unregistered and potentially predatory loan apps that have been causing distress among Nigerians.

The registration framework was necessitated by the disturbing activities of loan apps in the country, especially the illegal ones, over allegations of rights violations and unfair practices.

As of May 2024, the number of registered loan apps in Nigeria had increased to 284, including 232 companies with full approval and 41 others licensed by the Central Bank of Nigeria (CBN).

This increase in registered apps is a positive response to the regulatory measures, yet the challenge of unregistered apps is still an issue.