The Federal Competition and Consumer Protection Commission (FCCPC) has approved 173 digital‑lending applications to operate in Nigeria. Of these, 119 received full approvals and 54 were granted conditional approvals. The commission launched a registration drive after loan apps began harassing Nigerians, releasing a “Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022” to make registration and approval mandatory for companies wishing to operate in the sector. After several deadline extensions, the registration period closed on 27 March 2023, and the FCCPC has now published a list of approved apps. Companies without approval will no longer be permitted to operate in the digital‑lending space.
In August 2022, the FCCPC explained its actions against digital‑lending apps, stating: “In addition to enforcement actions and to promote fair, transparent and mutually beneficial alternative lending opportunities beyond traditional lending, 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 interim step toward a clear regulatory framework. This becomes enforceable immediately. It requires permission to proceed in digital lending and provides a limited moratorium period for existing businesses to comply in order to continue operating. The guidelines also require various service providers in the ecosystem—such as banks, access/download platforms or stores, technology providers, and payment systems—to obtain regulatory approval before offering their services.”
Among the approved loan apps listed by the commission are Branch International Financial Services Limited, Fairmoney Microfinance Bank, Pivo Technology Limited, Renmoney Microfinance Bank Limited, Carbon Microfinance Bank Limited, and Creditwave Finance Limited, among others. Loans without FCCPC approval will be removed from the Google Play Store and become unavailable for download. In November, Google Play updated its Developer Program Policy, mandating that digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya comply with local regulatory rules, a requirement that was to take effect on 31 January 2023. In March, Google removed hundreds of unapproved loan apps from the Play Store in Kenya, as reported by TechCrunch. Additionally, in February 2023, the Nigeria Data Protection Bureau disclosed that a national committee composed of federal agencies was collaborating to curb the activities of illegal loan apps in the country.
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