The Federal Competition and Consumer Protection Commission (FCCPC) has approved 173 digital lending applications to operate in Nigeria. The move comes after reports of loan apps harassing Nigerian citizens, prompting the FCCPC to launch a registration drive to protect consumers from these apps’ atrocities.
To regulate the digital lending space and make registration and approval a prerequisite for companies seeking to operate in the space, the FCCPC released a ‘Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022’. The commission set March 27, 2023, as the deadline for registration after shifting it multiple times.
As of now, the commission has released a list of approved apps that can operate in Nigeria, and companies without approvals will not be able to operate in the space. Some of the approved loan apps listed by the commission include Branch International Financial Services Limited, Fairmoney Micro Finance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited, among others.
According to the FCCPC, the limited regulatory framework is the first and interim step towards establishing a clear regulatory framework. The guidelines mandate different service providers in the relevant ecosystem to require regulatory approval before providing services.
Loans without FCCPC’s approval will be removed from the Play Store by Google and unavailable for download. In November, Google Play announced updates to its Developer Program Policy, which mandated that digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya must conform to regulatory rules.
In February 2023, the Nigeria Data Protection Bureau revealed that a national committee, made up of federal agencies, was working together to clip the activities of illegal loan apps in the country.