The Federal Competition and Consumer Protection Commission (FCCPC) has approved the operation of 173 digital lending applications in Nigeria.
The move is expected to further improve the regulatory environment for digital lending in Nigeria.
119 have full approvals, while the remaining 54 have conditional approvals. The move follows the FCCPC’s registration drive to protect citizens from the unsavory practices of loan apps.
The governing body issued a document titled “Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022” to regulate the digital lending space and make registration and approval mandatory for firms wanting to operate in the industry.
The FCCPC has now released a list of approved loan apps that can operate in the country. Companies without approval will not be able to operate in the digital lending space.
Recall that Google had also taken action to enforce regulatory compliance, removing unapproved loan apps from its Play Store in Kenya in March.
In August 2022, the FCCPC said, “In addition to the enforcement action(s) and in furtherance of the desire to promote fair, transparent, and mutually beneficial alternative lending opportunities apart from traditional lending to consumers, the inter-agency Joint Regulatory and Enforcement Task Force has developed and mutually adopted a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, as the first and interim step to establishing a clear regulatory framework.
“This becomes enforceable immediately. It requires permission to proceed in digital lending; it provides a limited moratorium period for existing businesses to comply to continue in digital lending.
“The guidelines also mandate different service providers in the relevant ecosystem (such as banks, access/download platforms or stores, technology providers and payment systems) to require regulatory approval before providing services.”
In February 2023, the Nigeria Data Protection Bureau revealed that a national committee made up of federal agencies was working to curb the activities of illegal loan apps in the country.
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